MOSCOW, February 24 – RIA Novosti. The main reasons for the current decline in the value of bitcoin are criticism from the head of the US Treasury Janet Yellen, the drop in global indices of technology companies, as well as the beginning of large-scale vaccination against coronavirus, Gleb Kostarev, director of the largest cryptocurrency exchange Binance in Russia, told RIA Novosti.
Over the past day, the price of bitcoin dropped to the level of 45.290 thousand dollars, according to the CoinMarketCap portal. As of 11.30 Moscow time on Wednesday, the cost of bitcoin on Binance was about $ 50.6 thousand. On Sunday, the cost of bitcoin broke another historical record of 58 thousand dollars, after which it fell sharply on Monday, going below the psychological mark of 50 thousand dollars. Before that, the value of Bitcoin has been growing for four weeks in a row, starting at the end of January. During this time, bitcoin has risen in price 1.7 times – up to 56 thousand from almost 32 thousand dollars a month ago. “Analysts identify two main reasons for the decline in the cost of bitcoin – profit-taking by” whales “(large investors – ed.) And the speech of Janet Yellen, who criticized the amount of power consumption for mining bitcoin, “said Kostarev.
Earlier this week, Yellen, speaking at the New York Times DealBook, called bitcoin “a highly inefficient way to conduct transactions.” According to the head of the US Treasury, bitcoin is also not widely used as a mechanism for financial transactions. “There is also a significant drop in the indices of technology companies (for example, the Chinese stock exchange SZSE lost almost 5% over these days, and the American NASDAQ 3.6%) According to investors and analysts, the 2020 crisis has given significant benefits for the growth of technology companies and bitcoin. And the current decline is associated with the emergence and spread of the coronavirus vaccine, “Kostarev added.