The crypto market was seen declining on Tuesday morning after the Bank of England warned of stability issues in the future caused by the enormous growth of the crypto space.
The Bank’s December Financial Stability Report noted that the crypto space activities have continued to grow and develop promptly. Additionally, it mentioned that currently, the crypto assets have been posing direct but limited risks to UK financial stability. However, it warned of “a number of financial stability risks” that come with the rapid growth of crypto assets as they will become more interconnected with the financial space outside.
The aforementioned warning calls for a crypto regulatory law both in the domestic land of the UK as well as the global territory. This would eliminate financial stability risks to some extent.
Crypto market decline
The crypto market has considerably declined since its crash on December 3, 2021. Recently, the market doesn’t seem to have rebounded significantly. Further, today’s dip made things worse.
Bitcoin ($BTC), the largest cryptocurrency, dropped to $47,775 at 7:43 a.m. ET, down by 2.43%. The market capitalization at that time was $902 billion, falling by 2.42. However, the trading volume increased by a huge 51.08% to $38.9 billion.
Ethereum ($ETH), the second-largest digital token, fell 4.08% to $3,838.95 at 7:43 a.m. ET. The market capitalization also dipped by 4.07% to $455 billion. However, the 24-hour trading volume increased by a whopping 74.33% to $24.4 billion.
- Solana ($SOL) dipped by 3.99% to $160.45.
- Cardano ($ADA) fell by 4.66% to $1.24.
- Polygon ($MATIC) lost 4.98% to $1.84.
- Sandbox ($SAND) dropped 7.94% to $4.75
Meme Coins: Aced the Race
The meme-frenzy cryptocurrencies, Dogecoin and Shiba Inu performed reverse and surged. Dogecoin was up by a massive 23.43% and traded at $0.2028. The coin broke the declining trend after Tesla CEO Elon Musk declared that the EV-giant Tesla will accept Dogecoin for merchandise. Further, Doge-inspired Shiba Inu gained 1.04% and traded at $0.00003495.
The meme coins have broken the declining trend, but it is yet to be seen when the whole crypto market reverses the trend.