Home » Crypto-news » Bitcoin recovers above $25,500; Ethereum and other altcoins struggle

Bitcoin recovers above $25,500; Ethereum and other altcoins struggle

Bitcoin recovers above $25,500; Ethereum and other altcoins struggle

Bitcoin, the world’s largest cryptocurrency by market capitalization, bounced back above $25,500 on Saturday after a sharp drop on Friday. The digital asset gained more than 2% in the last 24 hours and traded at $25,568.51 at the time of writing, according to CoinDesk.

However, other major cryptocurrencies such as Ethereum, Binance Coin, XRP and Cardano failed to follow Bitcoin’s recovery and remained in the red. Ethereum, the second-largest crypto by market cap, slipped below $1,700 and was down 2.21% at $1,668.69. Binance Coin, the native token of the leading crypto exchange Binance, lost 1.07% and traded at $237.18. XRP, the digital currency associated with Ripple, dropped 1.19% to $0.47810430. Cardano, a smart contract platform that competes with Ethereum, fell 2.84% to $3.63.

Some of the reasons behind the crypto market slump include regulatory uncertainty, security breaches and environmental concerns. The U.S. Securities and Exchange Commission (SEC) has proposed a rule that could affect decentralized exchanges (DEXs), which are platforms that allow users to trade crypto without intermediaries. The rule would require DEXs to collect and report information on their users and transactions, which could undermine their privacy and innovation benefits.

Meanwhile, a South Korean crypto lending platform called Delio has suspended deposits and withdrawals amid an investigation by regulators. The platform is accused of operating without a license and inflating its assets and revenues. Delio’s troubles have raised doubts about the credibility and security of the crypto industry in South Korea, which is one of the largest markets for digital assets.

Another factor that has weighed on the crypto market is the environmental impact of Bitcoin mining, which consumes a lot of electricity and generates greenhouse gas emissions. Some investors and governments have expressed concerns about the sustainability of Bitcoin and its role in climate change. In response, some crypto companies and miners have pledged to adopt greener practices and technologies to reduce their carbon footprint.

The crypto market is known for its high volatility and unpredictability, which means that prices can change dramatically in a short period of time. Investors should be aware of the risks and opportunities involved in trading digital assets and do their own research before making any decisions.

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