The price of Ether, the second largest cryptocurrency, has declined by more than four percent. It was around $3,184 on international exchanges and around $3,126 on Indian exchanges. Apart from this, there was a decline in Solana, Binance Coin and Cardano. There was a slight increase in the prices of Ripple and Tron. The crypto’s market capitalization was down more than four percent at around $2.89.
The interest of institutional investors has also increased in this segment. In this series, MicroStrategy, one of the big software companies, has spent more than two billion dollars in buying about 27,200 bitcoins. According to Bloomberg report, this company already has a larger reserve of Bitcoin. However, in terms of amount, this is the biggest purchase of Bitcoin by the company since December 2020.
Michael Saylor, chairman of MicroStrategy, decided to invest in Bitcoin as a hedge against inflation. Initially this company used to buy bitcoins in exchange for cash. Since then, MicroStrategy has been using the proceeds from the sale of shares and convertible debt to buy Bitcoin. The shares of this American company have increased by more than 2,000 percent in the last four years. However, the price of Bitcoin has increased by approximately 630 percent during this period. MicroStrategy’s total holdings of Bitcoin are approximately $23 billion. In the last few years, cases of scams have also increased in the crypto segment. Recently, the Reserve Bank of India (RBI) had again warned about cryptocurrencies. Along with this, cryptocurrencies were described as a big risk to financial and monetary stability. RBI Governor Shantikanta Das had said, “I believe that it should not be allowed to dominate the financial system. This poses a major risk to financial stability.”
