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Bitcoin price crisis: Cryptocurrency prices hit by overnight horror – DOGE and ETH down | City & Business | Finance

From midnight UK time Bitcoin fell in value from $37,349 to $35,063 at 5.50 am a 6.1percent drop with a slump in the price of Ethereum and Dogecoin also being experienced. Dogecoin saw a drop of 7.8 percent after the price of the memecoin fell from $0.300 at 9.30 pm to $0.303 at 5.50 am. Ethereum fell 3.7 percent between midnight and 2.30 am, before recovering slightly.

The price of Ethereum now sits at $2,298.

The price of cryptocurrencies soared in value this week after El Salvador deemed bitcoin legal tender.

However, the current u-turn in price valuation could be due to a recent statement by the central bank regulatory authority, the Basel Committee on Banking Supervision.

Many banking groups are planning to gain exposure to cryptocurrency assets, such as bitcoin.

The Basel Committee on Banking Supervision supervisory group has advised these banks to set aside enough capital to cover losses on any bitcoin holdings.

The regulator’s advice about crypto-asset exposures would make it very expensive for banks to hold digital currencies.

This in turn could hinder a wider market acceptance of crypto-assets such as bitcoin.

One proposal made by the regulatory body is to attach a 1,250 percent risk to a bank’s exposure to bitcoins and certain other cryptos such as Ethereum.

The price of bitcoin shot up earlier this week after President Bukele of El Salvador proposed a bill to make the central American nation the first in the world to make bitcoin legal tender.

In the nation’s legislature, a majority of 62 out of 84 lawmakers approved the revolutionary new bill.

On June 9 President Nayib Bukele tweeted: “The Bitcoin Law has just been approved by a qualified majority.”

President Bukele has said that bitcoin has the potential to help Salvadoran ex-pats send remittances back home.

In another tweet, he said: “It will bring financial inclusion, investment, tourism, innovation and economic development for our country.

“The government will guarantee the convertibility to the exact value in dollars at the moment of each transaction,” Bukele said.

More to follow…

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