Cryptocurrencies retreated slightly on Wednesday despite the Saudi Arabia Central Bank reportedly ramping up research into a Central Bank Digital Currency (CBDC).
Bitcoin has shed 1.57% over the past day to US$22,705, falling below US$23,000, which it briefly broke through on Tuesday.
“Bitcoin price is somewhat stable today as risk-on rally comes to standstill,” said Naeem Aslam, a market analyst at Avatrade. “Bitcoin has developed a strong positive correlation with riskier assets such as stocks and tends to move in the same direction.”
Ethereum, on the other hand, fell by 5% to US$1,553.
Today’s falls come despite the Saudi Arabian government ramping up its research into a CBDC.
Widespread adoption of cryptocurrencies is often seen as a good thing for the sector and usually sends prices higher.
According to data from the Atlantic Council, an American think tank group, 114 countries which represent 95% of the world’s GDP are exploring CBDCs.
In some of the altcoins, XRP slipped 3.98% to US$0.41, Solana fell 6.6% to US$23.23 and Dogecoin shed 5.9% to US$0.08469.