As the cryptocurrency market witnesses unmatched shifts, Bitcoin’s trading volume has significantly dropped listedbelow the $5 billion mark, raising concerns and speculations. As of Sunday, Bitcoin stands at $25,878, showing a small dip of less than 0.10%. Several contributing elements come into play.
The continuous power crisis in Texas hasactually affected miner reserves, putting a brake on Bitcoin’s capacity rate renewal. Simultaneously, a Federal Reserve authorities has showed that a concrete choice relatingto digital currency stays on the horizon.
In contrast, banking giant JPMorgan hasactually made strides in the sector by introducing a blockchain-based token intended at speedingup payments. This vibrant landscape highlights the ever-evolving nature of the cryptocurrency world.
Texas Energy Shortage Impacts Bitcoin Mining, Slowing BTC Price Recovery
The BTC/USD rate is presently on a decrease, affected by the continuous power crisis in Texas. Bitcoin’s healing hasactually stalled around $25,500 to $26,000 for almost 3 weeks, with no indications of enhancement. Texas, a significant center for Bitcoin mining due to low energy expenses and loose policies, is witnessing miners shutting down operations due to aggravating power problems exacerbated by severe weathercondition.
This crisis presents a risk to the network’s hash rate, especially as it impacts AntPool, a substantial factor accountable for about 22.27% of Hash Power.
Miner sell-offs to cover costs throughout this crisis might lead to bearish pressure on BTC rates, as formerly seen in August.
Federal Reserve Official Indicates Digital Currency Decision Remains on the Horizon
The Federal Reserve’s Vice Chair for Supervision, Michael Barr, has stated that the choice to concern a main bank digital currency (CBDC) in the United States is still far from being made.
Speaking at the Seventh Annual Fintech Conference hosted by the Federal Reserve Bank of Philadelphia, Barr revealed issues about stablecoins denominated in USD, highlighting capacity threats to monetary stability, financial policy, and the U.S. payments system.
Barr highlighted that while the Federal Reserve is actively investigating advancements in programmable payments platforms, blockchain innovation, and digital properties like cryptocurrencies and stablecoins, this is unique from making a choice on the next actions in payments system advancement.
He clarified that releasing a CBDC would need clear assistance from the executive branch and permission from Congress, echoing Federal Reserve Chair Jerome Powell’s position.
The news from today might not have an instant result on BTC/USD, however it highlights how careful UnitedStates authorities are when it comes to digital currencies.
JPMorgan Unveils Blockchain-Based Token for Expedited Payments
JPMorgan Chase & Co. is making strides in blockchain innovation by unveiling blockchain-based digital deposit tokens developed to boost cross-border payments and settlements.
These tokens represent client deposits in industrial banks and objective to accelerate deals while minimizing associated expenses utilizing blockchain’s effectiveness. However, regulative approval stays a important hu