$6 trillion asset manager Fidelity to launch crypto stablecoin.

Stablecoins with a $235B market cap are becoming the hottest trend in crypto, and even the Trump family is jumping in with their own digital dollar.

BItcoin and altcoins are trading in the red on Wednesday morning, continuing the downward trend from the previous session.

The world’s largest cryptocurrency, Bitcoin, fell by 0.7% in the past 24 hours to $69,140.8 by 01:08 ET (05:08 GMT). BTC had dropped to as low as $68,700 in the early Asian trading hours.

Other major tokens were also trading lower. Ethereum, the second-largest coin, dropped by 0.6% to $2,060.4.

Solana’s token fell by 1% and Cardano’s ADA dropped by 0.5%. Among the top ten cryptocurrencies, only Chainlink’s LINK token rose by 1% in the past 24 hours.

The crypto market has been volatile in recent weeks, with prices falling sharply after reaching record highs in early April. The recent sell-off was triggered by several factors, including rising inflation, the U.S. Federal Reserve’s plans to reduce bond purchases, and geopolitical tensions.

Despite the recent sell-off, some analysts remain bullish on Bitcoin and other cryptocurrencies in the long term. They believe that cryptocurrencies are still in the early stages of adoption and have the potential to revolutionize the financial system.

“We are still very early in the adoption cycle for cryptocurrencies,” said Ben Lillie, CEO of Hashnote, a company that builds tokenized money market funds. “As more institutions and individuals enter the space, we can expect to see more innovation and new use cases emerge.”

Lillie added that the liquidity and usability of traditional stablecoins are unmatched, and they serve as building blocks for more advanced derivatives and DeFi protocols.

In other news, U.S. Treasury Secretary Scott Bessant has said that the government is using stablecoins to keep the U.S. dollar the dominant reserve currency in the world.

“We are going to keep the U.S. the dominant reserve currency in the world, and we will use stablecoins to do that,” Bessant stated.

However, critics have warned that stablecoins come with risks. They could disrupt financial stability or become tools for fraudulent activities, raising concerns about regulatory oversight.