Bitcoin falls further below key $ 50,000 level after Yellen calls it ‘extremely inefficient’

The prices of Bitcoin and other cryptocurrencies fell on Tuesday, following a strong warning from Treasury Secretary Janet Yellen.

“It is an extremely inefficient way to conduct transactions, and the amount of energy that goes into processing those transactions is staggering,” Yellen said in an interview with the New York Times Dealbook on Monday night. It is not the first time he has criticized the cryptocurrency, which he said is often used for illegal transactions.

However, Yellen also said that digital currencies would likely stay here and that a “digital dollar” could serve as an easier payment system for many Americans who do not have such access.

The price of bitcoin BTCUSD,
it was last down 14% to $ 47,891, a level it hadn’t seen in about a week, but is still up 73% so far this year. The losses weren’t limited to bitcoin, priced at ether, the currency that runs on the ethereum ETHUSD,
platform, 20% off and for XRP XRPUSD,
which is pegged to Ripple, down 22%.

The former chair of the Federal Reserve has made clear since taking over the Treasury that her department will take a close look at bitcoin, with possible regulation to come.

She is just a “temporary brake on the game,” he said. Stephen Innes, Axi’s chief global markets strategist, in a note to clients. “In addition to the huge interest from the Middle East consortium in trading bitcoin ETFs on the Toronto exchange that needs to be physically hedged, but if companies start adding physical currencies to the balance sheet this year, that’s the revolutionary panacea,” he said. .

Bitcoin recently surpassed a market value of $ 1 trillion for the first time, and the big moves seen this year have attracted more investors and interest from companies like electric car maker Tesla TSLA.
which revealed earlier this month a $ 1.5 billion investment in bitcoin and plans to accept it as payment in the future. And the credit card giant Mastercard MA,
+ 2.25%
It has also said that it would allow merchants to accept some cryptocurrencies on its network later this year.

Read: Tesla’s bitcoin gambit already made $ 1 billion, more than 2020 earnings from car sales, analyst estimates

But Bitcoin had a volatile start to the week, falling on Monday in a move some blamed Tesla TSLA,
CEO Elon Musk. Over the weekend, he tweeted that “BTC and ETH look high lol” in response to Euro Pacific Capital CEO Peter Schiff, who defended gold over bitcoin. “Gold is not silly. It’s real money and better than both! “

That back-and-forth between Musk and Schiff continued on Tuesday, with the latter criticizing the electric car CEO’s bitcoin approach. Musk responded with an eggplant emoji, which some deduced was his way of rejecting the comment. That emoji was banned by the social media group Facebook on its Instagram unit for the phallic symbolism and food.


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