The cryptocurrency market traded hundreds of billions of dollars this week, bringing Bitcoin below the $ 40,000 mark for the first time in months.
Bitcoin price Dips below 40,000 USD
This week was a bearish one for the cryptocurrency market as several hundred billion dollars have flowed out. The bears took full control of the market, which led to a massive decline in cryptocurrency prices across the board. Bitcoin saw its price fall from over $ 50,000 to about $ 30,000 during the week. However, price bounced back a little, so the leading cryptocurrency is now trading above $ 39,000. Ethereum also lost 28% of its value this week, dropping from its all-time high above $ 4,500 to a trading price of $ 2,700 on crypto exchanges. The massive sell-off may have been caused by the panic caused by statements by Elon Musk and China. Despite the decline, various analysts and experts are confident that it is merely a correction and that prices will pick up again soon.
Elon Musk attacks Bitcoin’s Decentralization claims
Tesla CEO Elon Musk attacked Bitcoin earlier this week, claiming that the cryptocurrency is not a decentralized entity. According to Musk, Bitcoin is a highly centralized cryptocurrency, as most of the hashing power is controlled by many large mining companies. He claims that any negative situation related to mining assets could affect Bitcoin performance. Despite his attack on Bitcoin, Musk revealed that Tesla did not sell any of its BTC holdings. This latest development comes just days after Musk revealed the end of acceptance of BTC payments for Tesla’s electric vehicles. This was due to concerns about Bitcoin energy consumption and its impact on the environment.
China again bans crypto-related services
Earlier this week, Chinese authorities again imposed a ban on crypto-related services. The National Internet Finance Association of China, the China Banking Association and the Payment and Clearing Association of China have banned financial institutions and payment companies in the country from offering crypto-related services to companies and individuals in the country. According to the order, financial institutions are not allowed to register, trade, settle or settle transactions related to cryptocurrencies. The authorities warned the population that trading cryptocurrencies is risky. They added that the Chinese government will not cover any losses suffered by crypto traders. China has a long history of banning crypto activities in the country after it banned exchanges, Initial Coin Offerings (ICOs) and other events.
Leading crypto exchanges went under during the market correction
After the massive price crash this week, there were some dramas on the cryptocurrency market. Binance, Coinbase, Kraken and a number of other crypto trading platforms failed or restricted people’s access to their accounts during the market crash earlier this week. During the slump, several investors tried to sell their deposits, while others tried to finance their accounts. However, the exchanges were overloaded and could not process the orders. This resulted in some traders missing out on buying during the decline. Revolut, Kraken and Gemini also experienced connectivity issues that made it difficult for customers to use the platforms.
Wells Fargo offers wealthy clients access to cryptocurrencies
Despite the massive price decline, Bitcoin acceptance among financial institutions continues to increase. Wells Fargo, one of the leading US banks with a deposit volume of more than two trillion dollars, said it will offer its wealthy clients access to cryptocurrencies. The US Bank will launch its investment strategy by next month and said it will only be available to select clients. Wells Fargo said they see alternative investments in cryptocurrencies. Qualified investors can enjoy these funds through personally managed funds. Wells Fargo joins a growing list of US banks entering the cryptocurrency space. So far, Goldman Sachs and Morgan Stanley are already offering such a service to wealthy clients. For their part, Citigroup and JPMorgan Chase have expressed interest in offering similar services to customers.
Bank of America wants to use the blockchain for the settlement of equity transactions
Bank of America announced that it has joined the Paxos Blockchain Stock-Settlement Network. The US Bank will use blockchain technology to make trades faster and more efficient. According to the bank, the switch to the Paxos network will provide the opportunity to reduce the settlement time of its share transactions from two days to minutes. Bank of America also stated that it has been testing the Paxos system internally in recent weeks and now intends to use it for its customers once clearing house status is in place. Paxos offers a faster, cheaper and more efficient method of stock settlement than Depository Trust & Clearing Corporation (DDTC). DTCC is the largest player in the equity settlement industry and has been dominant over the past 50 years.
Coinbase will list Solana on Monday
The US-based crypto exchange Coinbase said that from Monday it will run Solana (SOL) on the Coinbase Pro trading platform. Customers were allowed to start transferring Solana into their Coinbase Pro accounts yesterday. However, the trading services will not be available until May 24. Solana is an exciting project in the cryptocurrency space and has attracted a lot of attention in recent months.
Saxo Bank launches trading services for cryptocurrencies
Online trading and investment firm Saxo Bank launched its cryptocurrency trading services earlier this week. The offer allows customers to trade Bitcoin, Ethereum and Litecoin against the Fiat currencies EUR, USD and JPY through a single margin account. Traders can do this without having to carry a cryptocurrency wallet. According to the company, the service is available to UK customers. You can trade the available crypto-FX pairs during normal Forex trading hours from Sunday evening to Friday evening. You can also open both long and short positions on the three major cryptocurrencies.