- Bitcoin extends its slip below $48,943 this Wednesday
- “Bitcoin is extremely inefficient and mostly used in illicit activities,” says Treasury Secretary Janet Yellen.
- Bitcoin hit the $1 trillion market and turned worth less than $900 billion.
On Tuesday, Bitcoin’s price dipped further after the statement and recently rally weighed by U.S. Treasury Secretary Janet Yellen and Tesla CEO Elon Musk.
There was a plunge of 11% recorded in the past 24 hours. The valuable digital currency relaxed below $50,000. It traded around $48,943 at 12:30 a.m.
According to data, the world’s No.1 digital coin hit an intraday low of 16% on Tuesday.
This dip-down rally was chased by other digital tokens as well. Ether slipped to 11% to $1,573, and XRP stopped at 17%.
The reason for the Bitcoin slide may be associated with the statement given by Yellen on Monday.
She stated that Bitcoin’s “extremely inefficient way of conducting transactions”.
The lady has warned about Bitcoins use in illicit activities and about the Bitcoins’ network consuming more electricity causing an impact on the environment.
The power consumption in producing new coins is much higher than the electricity consumed by Pakistan, as per researchers at Cambridge University.
Bitcoin does not have any central authority. It works on a mesh network and miners (machines) require high-electric power to compete and solve complex math puzzles.
Moreover, Bitcoin also received a pull-down from the former Federal Reserve chair told CNBC’s Andrew Ross Sorkin at a New York Times DealBook conference stating, “It is a highly speculative asset and you know I think people should be aware it can be extremely volatile and I do worry about potential losses that investors can suffer.”
It was amazing to see Bitcoin hitting $1 trillion in market value last week. However, now it has dipped to $900 billion, according to one of the news portals.
News of Wall Street, Tesla, and Mastercard instrumented in the fall of Bitcoin this week.
Earlier this month, Tesla bought $1.5 billion worth Bitcoin, which suffered its biggest fall since Sept. 23.
According to Glen Goodman, “It’s a virtual forest fire and the wood was bone-dry and waiting for a spark. Elon Musk was that spark.”