Bitcoin Slumps After Fed Chief Gives Warning
-In the past 24 hours, the price of Flagship Cryptocurrency, Bitcoin hit a low of $53,285.84 after a comment by US Fed Chief
-US Federal Reserve Chairman, Jerome Powell has said that people must realize the risk of cryptocurrencies
-The chief stated that the volatility of the coins makes them inappropriate as store values or cryptocurrencies
The price of Bitcoin dropped to almost $53,000 after US Federal Reserve Chairman, Jerome Powell criticized the cryptocurrency.
Powell stated that the Feds refer to cryptocurrencies as assets rather than coins because their volatility prevents them from performing the basic functions of currencies.
While speaking at a virtual summit hosted by the Bank for International Settlements, Powell implied that the coins are not useful as a store value.
The Fed Chief said that cryptocurrencies are more of an asset for speculation, rather than a mode of payment. He added that BTC is a good substitute for gold but not Dollar.
In the last 24 hours, the price of Bitcoin has dropped close to $53,000 and risen as high as $58,000.
Read also: “Wolf of Wall Street” Predicts Bitcoin Reaching $100,000
Monday was not a good day for BTC and other altcoin investors as many cryptocurrencies recorded loss in value.
At the time of this report, Bitcoin is trading at $55,453 and the coin continues to consolidate.
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