(Bloomberg) – Bitcoin has fallen the most in more than seven weeks, a few days after reaching a record high.
The largest crypto-currency fell 8.5% to $ 55,810.32 in Singapore on Sunday, after falling 15.1% to $ 5,707.51. Ether, the second-largest sign, fell nearly 18% before reducing losses.
Several online reports have attributed the progress to the speculation that the U.S. Treasury may suppress money laundering carried out by digital assets.
Bitcoin reached a record high of $ 64,869.78 last week before the debut trade for the cryptocurrency exchange Coinbase Global Inc. on the Nasdaq Wednesday. The original crypto-currency, Bitcoin, is valued at more than $ 1 trillion after a boom of more than 800% over the past year.
Bitcoin approaches $ 65,000 with Coinbase Listing request for fuel
Increasing general acceptance of cryptocurrencies has spurred Bitcoin’s rise, as well as raising other tokens to record highs. Interest in crypto has increased again as companies from PayPal to Square have begun enabling transactions in Bitcoin on their systems, and Wall Street businesses such as Morgan Stanley have begun giving the tokens access to some of the richest customers.
This is despite persistent concerns about their volatility and usefulness as a means of payment. Dogecoin, a sign created as a joke and reinforced by people like Elon Musk and Mark Cuban, gathered more than 110% on Friday before falling the next day. Demand was so strong for the sign that investors who wanted to trade it on Robinhood crashed on the website, the online stock exchange said in a blog post on Friday.
Governments are examining risks in the sector more closely as the investor base expands.
Federal Reserve Chairman Jerome Powell said last week that Bitcoin is “a bit like gold” because it is a means of speculation rather than making payments. Christine Lagarde, president of the European Central Bank, aimed in January to bring about Bitcoin’s role in facilitating criminal activities, saying that the cryptocurrency made ‘funny things’ possible.
Turkey’s central bank has banned the use of cryptocurrencies as a means of payment since April 30, saying the level of anonymity behind the digital tokens carries the risk of ‘non-recoverable’ losses. India will propose a law banning cryptocurrencies and keeping anyone who trades such assets, Reuters reported in March, citing an unidentified senior government official with direct knowledge of the plan.
Crypto-enterprises are strengthening their top ranks to shape the emerging regulatory environment and address the persistent skepticism about digital signs. Bitcoin’s most ardent proponents see it as a hedge of value and inflation today, while others fear a speculative bubble will build.
(Updates with the concerns of the regulators from the seventh paragraph)
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