Landslide in cryptocurrency: These are the two main reasons
Bitcoin, the cryptocurrency that has been gaining market capitalization for the past few months, suffered a major landslide on Wednesday.
In a span of about ten days, Bitcoin fell as much as 305, while other cryptocurrencies, such as Ethereum, fell 40 percent and Dozcoin fell as much as 455.
In the last seven days alone, Bitcoin has fallen by an average of 245, Etherium by 445 and Dozcoin by 405, according to data from Koenigko (Rishlanbhapay) as of Saturday night.
If you look at the statistics of Bitcoin alone, the cryptocurrency, which was worth Rs 465,000 in April, was traded up to Rs 434,000 on May 22.
In this way, the 90-day maximum and the current minimum have dropped by about half.
Investors around the world have been discouraged by the sharp fall since Wednesday.
As the market declines, investors are expected to sell large quantities of cryptocurrencies. It is estimated that 41,100 billion dollars has been sold since the market fell.
China’s new policy has been cited as one of the main reasons for the market’s decline. China has asked cryptocurrencies not to be recognized by any financial institution. It is prohibited to buy or sell any goods or services on the basis of such currency.
China’s new policy has been cited as one of the main reasons for the market’s decline. China has asked cryptocurrencies not to be recognized by any financial institution.
It is estimated that this has made cryptocurrency insignificant in the Chinese market and has created a kind of panic by selling it in large quantities.
Another major reason is the change in bitcoin policy by the American company Tesla.
Earlier, Tesla had announced that it would promote Bitcoin and buy cars made by Tesla from Bitcoin. Now the policy has been changed to not use Bitcoin.
Bitcoin mining and trading now generate excessive amounts of coal to generate electricity and pollute the environment by increasing the amount of harmful gases such as carbon dioxide.
Tesla is leading the way in protecting the environment, and the company has announced that it will not be able to buy vehicles made by Bitcoin.
Tesla is leading the way in protecting the environment, and the company has announced that it will not be able to buy vehicles made by Bitcoin.
Tesla Chief Executive Officer (CEO) Alan Musk said on Twitter that it would encourage the use of environmentally friendly and effective crypto. The same incident has played a big role in the decline of crypto to some extent.
Some have interpreted this phenomenon in a general way. They say that such a decline after a big jump is a normal business cycle.
Investors are confident that they will soon reach the same level again. Some have speculated that large investors have manipulated it and that it is likely to increase it by buying it at a cheaper price.
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