Cryptocurrencies Are Coming Up, Bitcoin and Coinbase Stocks Dropping
Liputan6.com, Jakarta - After experiencing a sharp increase, cryptocurrencies experienced a decline on Saturday, April 17, 2021. At that time, the price of Bitcoin fell about 14 percent. Trying to get up on Monday, April 19, 2021, the digital currency actually declined again.
As reported by CNN, Tuesday (20/4/2021), the price of Bitcoin fell 0.7 percent against the US dollar at the close of the stock market Monday, April 19, 2021. It was recorded that Bitcoin was traded at around USD 56,000 per coin.
Yesterday's weekend drop is a new record, as Bitcoin has been experiencing a major boom for months, including Coinbase's massive IPO that took place last week. In this regard, the crypto exchange is having a positive impact as it is worth almost USD 100 billion. In line with the price of Bitcoin, Coinbase shares lost 2.6 percent on Monday trading.
Bitcoin went down as several countries like Turkey made a fuss about banning Bitcoin as a payment methodology and discussed further scrutiny by the United States Department of the Treasury.
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The crypto market is also getting busier as China invented the digital yuan and came up with the idea of launching a currency at the 2022 Beijing Winter Olympics. Meanwhile, the Bank of England announced the creation of a central bank digital currency as well as a task force to explore its use.
"Big Tech is also developing their own version of cryptocurrency. All of this represents significant future competition for bitcoin," said Action Economics analysts in a note. At the same time, cryptocurrencies still have a lot of bullish supporters.
"We don't think these factors change the fundamental story for Bitcoin which still appears to be supported by limited supply and the expanding adoption of institutional and retail investors," said Win Thin, head of global currency strategy at Brown Brothers Harriman. In addition, the US dollar index also fell on Monday, with the greenback down 0.5 percent.