Bitcoin Quickly Drops Below $44k and UNHCR Begins Accepting Stablecoin Payments

Bitcoin price started falling earlier today as it encountered short-term bearish sentiment in the market. The largest cryptocurrency by market cap dipped below $44k at one point, before picking up a bit later in the day. Altcoins also saw significant price declines. More on that later.

In other news, the United Nations High Commissioner for Refugees (UNHCR) has started accepting donations in USD stablecoins. UNHCR recently received $2.5 million in USD from Binance, opening the floodgates for stablecoin-based donations in the future. Proceeds go to Ukrainian refugees and their rehabilitation. Stablecoins are also attracting attention in Sweden, as the central bank successfully tested the second phase of the e-Krona National or CBDC stablecoin.

Gary Gensler, the current chairman of the Securities and Exchange Commission (SEC) has asked his staff to cooperate with the Commodities and Futures Trading Commission (CFTC) on crypto regulation. The two US regulators have competed to become the industry’s top regulator, but have failed to reach an agreement. The CFTC wants more involvement in crypto regulation and will likely be more lenient with it, but the SEC insists this is its primary jurisdiction.

Elon Musk promised to turn things around at Twitter after buying a hefty 9.2% stake in the social media website for more than $3 billion. But he did say something about what bothered him regarding cryptocurrencies. More on that later.

The tourism minister of El Salvador has tweeted that the country benefits greatly by declaring Bitcoin as legal tender. Morena Valdez, the minister in question, has stated that 81% of the sector has recovered from the effects of the Covid-19 pandemic and is well on the way to achieving fast enough growth. The country remains the only state in the world to accept Bitcoin as legal tender, but the effectiveness of the move is still up for debate.

An NFT task force working for the Japanese government has recommended that the government appoint a new Web 3.0 minister to facilitate the rapidly emerging sector. The task force wants the country to become the standard-bearer for the new Internet of the future.

An American football star and sports broadcaster ESPN recently signed an NFT deal that will last for many years. Brady has come out of retirement to play in the NFL and is releasing some NFTs of his own across the channel. In other NFT news, Starbucks also announced a new NFT action, but at the same time is under fire for firing a union leader on the same day.

Bitcoin transaction fees have a minimum of ten years achieved despite the general increase in the price of the digital currency. This is due to the popularity of the Lightning Network on other chains promoting faster transaction times and lower costs.

Bitcoin drops below $44k

Bitcoin dipped below $44k for some time earlier in the day. The cryptocurrency is under pressure from bears who have felt that the bulls are not strong enough to make a convincing move to $50k.

The last 24 hours started with the price of BTC around $45.8k. It traded sideways for a while before starting to drop at 2am. It fell below $45k and then recovered. After that, it continued to trade sideways for a long time before starting to decline again at 1:00 pm The price dipped below $45k and then $44k in slow and volatile movements, hitting a 24-hour low of $43.4k. It is now trading near the $44k level again.

Bitcoin is currently trading below the key $45k level again, but if the bulls can take the price out, it will turn out to be only a short-term decline. However, the bulls are tired and this could give the bears an opportunity to attack and push the price to $42k and then lower.

The total market capitalization of Bitcoin was approximately $833 billion at the time of writing and its share of the crypto market was 41.95%.

BTC price chart

Losing Altcoin Books

Altcoins posted their own losses as they followed BTC into the abyss. The big losers were Ethereum (ETH, -5.9%), Solana (SOL, -10.9%), Terra (LUNA, -6%), Ripple (XRP, -6.5%), Cardano (ADA, -9%), Avalanche (AVAX, -9.2%, Polkadot (DOT, -9.5%), Dogecoin (DOGE, -14%), Shiba Inu (SHIBA, -10%), Polygon (MATIC, – 8.5%) and Litecoin (LTC, -8%), all of which posted higher losses than BTC itself.

Polka dot price chart

In other news…..

Elon Musk Pledges to End Crypto Spam on Twitter

Elon Musk bought about 9.2% of all outstanding shares of Twitter and is now planning to make some changes to the platform, including the crypto policy.

While he hasn’t gotten many Dogecoin credentials lately, he has stated that the bots posting crypto-related spam on the platform are the most annoying thing that he would like to see go away. While Musk is known to own crypto and bought a massive $1.5 billion worth of Bitcoin for Tesla in 2021, he still outspokenly criticizes the sector, often from a position of ignorance.

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