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Bitcoin falls to $56,329 amid bearish trend prevails on crypto market

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CALIFORNIA: The cryptocurrency market continued with a bearish trend on Tuesday, with the market capitalization shedding another 1.4 percent to reach $2.66 trillion as of 1300 hours GMT.

The largest cryptocurrency Bitcoin shed 1.57 percent to reach $56,329. With this decrease in price, the market capitalisation of the biggest cryptocurrency has reached 1.06 trillion.

Ether, the world’s second-largest cryptocurrency by market capitalization, slipped 1.09 percent to reach $4,137. With this fall in price, the market capitalization of ETH has reached $486 billion.

Similarly, the XRP price decreased by 1.54 percent to reach $1.04. The market capitalization of XRP stands at $103.7 billion after this decrease.

Likewise, Cardano’s (ADA) price went down by 2.06 percent to reach $1.77. Its market capitalization has reached $58 billion with this decrease.

Following suit, Dogecoin (DOGE) price went slightly down by 0.03 percent to reach $0.223. With this decrease in price, the market capitalization of doge has reached $29.5 billion.

Meanwhile, the International Monetary Fund (IMF) has warned that Bitcoin poses “significant risks” to consumers, citing El Salvador’s recent move to make the e-token legal tender as the country prepares to launch a crypto-funded “Bitcoin City.”

While cryptocurrencies and digital money have the potential to make payment systems more “efficient,” El Salvador’s decision to make Bitcoin a legal tender is a risky one, the IMF said in a press release.

“Given bitcoin’s high price volatility, its use as a legal tender entails significant risks to consumer protection, financial integrity, and financial stability,” the global financial body said, urging for “strengthening the regulation and supervision of the new payment ecosystem.”

While the IMF recognized the system could enhance “financial inclusion and [support] growth,” it called for additional legal safeguards to protect consumers, as well as to counter money-laundering and the “financing of terrorism.”

The IMF’s warning comes just days after El Salvador unveiled plans for the world’s first “Bitcoin City,” which will be initially funded by crypto-backed bonds. El Salvador passed a law granting Bitcoin the status of an official legal tender alongside the US dollar last September, becoming the first nation in the world to recognise the crypto.

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