Tuesday, Nov 29, 2022
Outlook Money

Crypto Isn’t Good For Retirement Investment: US Treasury Secretary; Bitcoin Falls

Bitcoin fell by 3.69 per cent, while Ethereum was down by 10.92 per cent in last 24 hours

Cryptocurrency investments should not be relied upon as part of a retirement plan.

People should not rely on investing in cryptocurrencies as part of their retirement strategy, Janet Yellen, an American economist and the 78th US Secretary of Treasury, has said. According to her, the asset class is “very dangerous”, and Congress should warn the general public about the danger, according to CryptoPotato.com.

Yellen has warned people against adding digital assets to their retirement plans. She said that cryptocurrency is “a very risky investment”, adding that Congress should explain which assets can be added to retirement options, such as 401(k) plans.

Incidentally, Fidelity Investments, which is considered among the world’s top asset managers, had said in April that investors would be able to add Bitcoin to their retirement 401(k) plans. 

Yellen’s views on crypto are extremely conservative. Last year, she had spoken out against the Bitcoin sector on multiple occasions. Two years ago, she had said that Bitcoin and other altcoins might have some benefits for the US financial system, but they could also be used for terrorist funding and money laundering. Yellen soon branded BTC as a highly speculative asset, and inefficient for transactions.

In other news, Crypto.com is laying off a good chunk of its workforce, according to sources with knowledge privy to the matter. The cuts are the latest begrudging reaction to a beaten-up digital assets market stuck in the doldrums. 

Efforts by liquidity providers to diversify revenue streams away from spreads on trading fees have yet to bear fruit. One source said that cryptocurrency exchanges have become “entirely dependent on trading fees”. The industry’s struggles come at a time when institutional investors are increasingly taking digital assets seriously. Crypto.com signed Lebron James as the face of its advertising efforts, capping off a $1 billion push.

Crypto Prices

The price of Bitcoin in the cryptocurrency market fell by 3.69 per cent in the last 24 hours, and it was trading at $28,888.48 at 4:45 pm IST. According to Coinmarketcap.com, its dominance in the crypto market is currently at 47.11 per cent, up by 0.61 per cent in the last 24 hours.

In the last 24 hours, Ethereum (ETH) was trading at $1577.92, down by 10.92 per cent, while Binance Coin (BNB) was down by 2.51 per cent during the same time period, and was trading at $281.46. Solana (SOL) was down by 8.96 per cent to $35.86, while Cardano (ADA) was down by 4.99 per cent to $0.5815. 

Meme Coins

Dogecoin was trading at $0.07435 at 4:45 p.m. IST, down by 5.65 per cent on Coinmarketcap.com. Its rival, Shiba Inu, was down by 7.07 per cent, and it was trading at $0.000009747. Samoyedcoin was down by 8.42 per cent, and it was trading at $0.005375, while Dogelon Mars was down by 10.73 per cent, and it was trading at $0.000000372.

Overall Scenario

According to Coinmarketcap.com, the global crypto market cap was at $1.17 trillion, a decrease of 4.78 per cent in the last 24 hours, while the total crypto market volume was $70.84 billion, an increase of 19.70 per cent.

Metaxa METAXA was the biggest gainer, rising 551.42 per cent. It was trading at $0.000001752 at 4:45 pm IST, according to Coinmarketcap. In contrast, Expanz XPANZ witnessed the maximum loss and fell by 99.96 per cent. It was trading at $0.01289.