Digital currencies fall as BOE warns of crypto spillover to financial markets

Jul 14, 2021 0 comments

image: ft.com

The prices of major digital currencies went down on Tuesday following the the Bank of England’s warning of the threat of crypto spillovers to mainstream financial markets, with the market cap decreasing to $1.39 trillion (-3.5 percent) as of 1405 GMT.

The price of Bitcoin (BTC), the largest cryptocurrency, decreased to $32,632 after shedding 2.80 percent. With this decrease in price, the market capitalisation of the BTC has reached $612 billion.

Likewise, ethereum (ETH) price shed 5.76 percent to reach $1,984. With this decrease in price, the market capitalisation of ETH has reached $231.5 billion.

Similarly, XRP shed 2.53 percent to reach $0.620. The market capitalisation of XRP stands at $61.9 billion after this decrease.

On the other hand, Cardano (ADA) price reached $1.28 with a 4.25 percent decrease in its price. Its market capitalisation has reached $41.3 billion after this decrease.

Likewise, Dogecoin (Doge) price depreciated by 5.19 percent to reach $0.201. With this decrease in price, the market capitalisation of Doge reached $26.1 billion.

Meanwhile, the Bank of England (BOE) has warned of the threat of crypto spillovers to mainstream financial markets in its latest bi-annual Financial Stability Report.

In the report published Tuesday, the UK central bank pointed to bearish conditions in the crypto market since May that have seen the price of bitcoin (BTC, -3.11%) fall by around 50%. Despite “spillovers to broader financial markets” from crypto being limited, the BOE said the growing interest in cryptoassets by institutional investors, banks and payments operators is a concern.

“These developments could increase the interlinkages between cryptoassets and other systemic financial markets and institutions,” the report said.

Crypto exposure among financial institutions has been highlighted as a threat previously, with the Bank for International Settlements’ Basel Committee suggesting last month that banks should set aside capital to cover losses in full.

Sourced from dailytimes.com.pk.

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