IMF (International Monetary Fund) warns that crypto acceptance as a national currency might affect a nation's economic stability.
Today's sessions see most cryptocurrencies under pressure. The unattractive sentiments have Bitcoin trading beneath $47K. The dominant digital coin witnessed its price dipping towards $46,874 lows, losing 3.5% of its value. Meanwhile, the asset remains 62% high since 2021 January. However, the token is still far beneath its ATH, near $65K in April.
CoinDesk report indicates that Dogecoin stands at $0.24 following a 4% plunge. Also, the report shows that Ether traded marginally high near $3,226.8. Other digital coins such as Litecoin, Stellar, and XRP remained down, while Uniswap saw value gains in the past 24 hours.
On the other side, IMF (International Monetary Fund) warns that crypto acceptance as a national currency might affect a nation's economic stability. The warning comes some days before El Salvador's BTC law goes into effect. The Central American country will have BTC as its legal tender starting September 7.
IMF's warning blog said that some nations might indulge in economic shortcuts, adopting cryptocurrency as a national currency. The board recognized that most cryptos are easy to access, secure, and less costly to transact. However, IMF stated that the risks related to digital currencies outweigh the possible returns.
Meanwhile, crypto products assets under management surged over 57% since July, standing at around 455 billion. Average daily trading volume surged over 46% to hover at $544 million (data from CryptoCompare, a crypto tracker).
The overall crypto capitalization stands around $2.06 trillion after slight declines since yesterday. Meanwhile, the crypto market volume increased by nearly 20% to $107 billion.
Investors appear cautious after cryptos' recent rally. With that, the market showcases mixed trading on Tuesday. Out of the top ten cryptocurrencies, only three traded higher early today. Solana (SOL) led the day's gainers, soaring by 17%.
Mudrex founder Edu Patel says that the past 24 hours saw most assets struggling. BTC perseveres around the $47,000 price mark. Failure to maintain this critical support might see the overall market turning bearish in the near term.
Patel praised Solana for its recent lucrative movements. It is the only altcoin that doesn't show a correlation with the crypto market. SOL managed to cross the $115 price level, increasing by a whopping 550% in less than one month.
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