Since its inception in 2009, cryptocurrencies have been regarded as one of the most volatile and fluctuating topics in the world, with many people trying to figure out exactly what cryptocurrency is. Cryptocurrencies are still in their infancy as a market that has yet to discover its set of logical use cases. As a result of this newness, the industry has high volatility, which is primarily driven by investors' increased experiments to understand how prices fluctuate.
Global financial markets have become risk-averse in the last 24 hours, owing to concerns that the Federal Reserve will reduce stimulus sooner than expected to keep inflation under control, and the gloomy mood is expected to persist.
The consumer price index (CPI), which measures a basket of goods as well as energy and housing costs, rose 4.2 percent year over year in April, according to official data released Wednesday. This is the fastest inflation increase in 12 years.
At press time, the most valuable cryptocurrency was trading near $49,668, after hitting a low of $46,294 during Asian hours. According to CoinDesk 20 data, that was the lowest price since March 1.
Tesla's CEO Elon Musk announced on Twitter that the electric car maker has suspended BTC payments for its vehicles due to the environmental cost of mining, causing the price to plummet to multi-week lows.
Following the release of the data, Bitcoin fell from $55,000 to $53,000, with further losses following Musk's tweet.
As India battles the latest deadly COVID-19 wave, Vitalik Buterin, co-creator of the crypto network Ethereum, has made a cryptocurrency donation to India's relief funds.
At press time, the second most valuable cryptocurrency was trading near $3,753, down 12.30% in 24- hour cycle. According to reports, Buterin has donated 500 ETH and over 50 trillion SHIB (Shiba Inu) coins to entrepreneur Sandeep Nailwal's India COVID-Crypto Relief Fund.
At press time, the popular cryptocurrency was trading near $0.40, down 17.40%. Musk posed a question to his Twitter followers on Tuesday, two days after referring to Dogecoin, the cryptocurrency that began as a meme, as a "hustle" on a comedy sketch show. "Do you want Tesla to accept Doge?" took Twitter to ask this question.
According to an official, crypto is treated as property by the IRS for tax purposes and can be seized in the same way. The Internal Revenue Service (IRS) of the United States may seize people's crypto assets to settle unpaid taxes, according to an IRS official.
The central bank of South Korea is requesting permission to monitor cryptocurrency transactions made through users' bank accounts.