Cryptocurrencies took a hit, falling from record highs

Cryptocurrencies took a hit, falling from record highs

China is looking towards cryptos as investment alternatives

The weekend was difficult for some of the world’s most valuable cryptocurrencies, as their prices dropped significantly from all-time highs.

Cryptos had hit record highs in the past week amid excitement surrounding the market debut of Coinbase – the largest cryptocurrency company to go public.

After the frenzy stopped, Bitcoin price fell as much as 19.5% to $52,148.98 on Sunday after reaching an all-time high of $64,800 on Wednesday. Moreover, other cryptocurrencies, including Ethereum, the second-largest by market value, dropped as much as 18% falling from $2,150 to $2,000 and below.

Despite the fall, the beginning of the week came with promising news from China. The Peoples Bank of China (PBOC) is calling bitcoin an “investment alternative.” The statement comes after, in 2017, China banned and shut down initial coin offerings (ICOs) and local cryptocurrency exchanges.

Moreover, China is considering its digital currency called digital yuan, which will be issued by the PBOC, aiming to replace cash and coins in circulation. According to Li Bo, deputy governor of the PBOC, the central bank could trial the digital yuan with foreign visitors at the 2022 Beijing Winter Olympics.

Source: cnbc.com

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