Cryptocurrency prices are falling, with the two largest – bitcoin and ether – losing about 4%. Bitcoin traded at around $37.80, falling after June 15th, when its price reached $41.330.
The largest digital currency has been “hit” by the Fed’s announcement that it may raise interest rates by the end of 2023. The riskier assets, such as some stocks and cryptocurrencies, have also been negatively affected by continuing concerns that the Fed may withdraw faster than its expected bond buying program.
The World Bank rejected El Salvador’s request for help in using bitcoin as a legal tender. It was also stated that it could not help El Salvador in its plans due to the environmental impact of bitcoin mining and transparency issues.
The World Bank’s refusal coincided with a repeated warning from the Financial Conduct Authority (FCA) that people “should be prepared to lose all their money” if they invest in cryptocurrencies. The regulator estimates that there are 2.3 million British adults now holding cryptocurrencies compared to 1.9 million last year, with more and more considering them as a complement or alternative to established investment.
On the other hand, crypto enthusiasm is also growing, with more than half of their users saying they have had a positive experience so far and are likely to make other purchases, with the percentage rising from 41% to 53%, according to the FCA. The percentage of those who regretted the purchase of cryptocurrencies decreased from 15% to 11%.