Cryptocurrencies fall despite Biden's order to evaluate the digital dollar option.
The main asset of this type, the Bitcoin, is again below US$40,000, the last week fell almost 10% The last three weeks have been the most volatile for cryptocurrencies of any origin, from the strongest Bitcoin to the Mirrored Microsoft, another crypto asset that ranks 1,000th by capitalization, dawn Thursday falling. In fact, of the first thousand crypto names, at least 95% accumulate weekly losses.
On Wednesday, the vast majority of cryptocurrencies climbed 10%, after the US President announced the signing of an executive order from the White House to evaluate the risks and benefits of generating a digital dollar, which would not only be an initiative of the Executive but backed by the Federal Reserve (Fed), as well as a regulation of cryptocurrencies. At the beginning of the week, cryptos were also gaining weight after learning that both Russia and Ukraine were financing the conflict with cryptocurrencies. The demand for this type of assets was fueled from that part of the world, and both Bitcoin and Ethereum rose.
Starting Thursday, the Bitcoin fell again from the US$40,000 line, thus wiping out almost all the gains it had made on Wednesday due to Biden's announcements. The main cryptocurrency had a negative variation of 7.2% at the beginning of the day in Colombia and a one-week drop of almost 10%. At around 7:00 a.m. Bitcoin was still at US$39,000. "While the initial reaction to Biden's digital asset executive order was 'it's not as bad as it could have been,' a closer look at the details shows that it doesn't eliminate potential regulatory risk," Jeffrey Halley, senior market analyst at Oanda Asia Pacific, told Bloomberg