Bitcoin (BTC) the largest cryptocurrency in the world by both price and market capitalization had lost 10.8% of its value in the last 24 hours. The digital token plummeted from $61,396 to $54,750 after reaching an all-time high price of $64,869.78 on Wednesday.
The plunge in the price of Bitcoin and other altcoins followed news coming from the U.S. Treasury. According to Bloomberg and Coinbase, the U.S. Treasury is said to put an end to money laundering through digital currencies and assets.
Bitcoin is a decentralized currency. The digital token isn’t tied to the mainstream financial system and transactions are conducted on a blockchain system online, which makes it hard to track where money is transferred. Therefore, Bitcoin has been used on the dark web and illegal websites for money laundering, drug trafficking, child porn, and other immoral actions.
Bitcoin as a hedge against inflation
The digital token soared to its all-time high levels amid the Covid-19 pandemic. Financial institutions and traders transitioned to Bitcoin instead of gold as a hedge against inflation.