MUMBAI: The highest cryptocurrencies fell on Thursday, with bitcoin declining over 3% to be below the $ 35,000 mark. The crypto asset was trading at $ 34,694 at 12 pm, according to data available with crypto exchange WazirX.
According to experts, the sale has come on the back of former US Federal Reserve Chairman Janet Yellen’s comments that cryptocurrencies are “used” primarily for illegal activities. She is US President Joe Biden’s nominee for treasury secretary.
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“You are quite right that the technologies to achieve this change over time, and we need to ensure that our approaches to dealing with these issues, with terrorist financing, change along with technology that Cryptocurrencies are a particular concern. I think many. are used – at least in a transactional sense – primarily for illegal financing. And I think we really need to explore ways in which we can reduce them use and ensuring that money laundering does not occur through those channels, “Yellen said.
Ether, which reached its highest level a few days ago, fell 5% to $ 1,303. Another major cryptocurrency stellar slipped 0.5% to $ 0.29.
Explaining recent price movements in ether, Nischal Shetty, WazirX’s chief operating officer, said, “This week we saw ethereum prices hit an all-time high. This price rally also led to a reduction in the amount of ether held on central crypto exchanges worldwide. This dive is a strong indicator of the fact that people are looking to hold ether for a long time. This is also an expected behavior given that many people would wait for Ethereum 2.0 to launch when Proof-of-Stake (PoS) comes into play. They probably wanted to hold their tickets until then, knowing that there would be an even greater supply squeeze when the PoS chain is launched. “
There’s more investor confidence, people have seen DeFi’s power, and they know DeFi is going to be huge, Shetty said. “It’s a huge technological innovation and Ethereum is leading in this ecosystem. So as DeFi grows, the need for Ether as a currency in the Ethereum blockchain will increase.”
DeFi or devolved funding is an experimental form of finance that does not rely on central financial intermediaries.