Large companies such as Tesla (NASDAQ: TSLA) invested billions in the digital token. Hence, the interest from billionaires and financial institutions drove the cryptocurrencies to all-time high prices.
Ajit Tripathi, head of institutional business at Aave, said in a recent Citi report: “Bitcoin also has an extraordinary brand value. Even Silicon Valley pundits like Chamath Palihapitiya or Jack Dorsey are essentially bitcoin maximalists – they cannot think beyond bitcoin and do not acknowledge other cryptocurrency innovations.”
“In that sense, bitcoin has some of those religious properties; and such strong sentiments are very valuable if you are trading.” He continued.
Nonetheless, the U.S. Treasury alongside European and international watchdogs has started putting regulations to stop abusing cryptocurrencies. For instance, India said that it will ban trading and mining BTC and other altcoins.
Meanwhile, Turkey’s central bank said on Friday that starting from April 30; the use of cryptocurrencies will be halted and will no longer be a valid form of payment. The central bank of Turkey argued that cryptocurrencies have a risk of “non-recoverable” losses. The bank said the anonymity of digital brings the risk of “non-recoverable” losses.
