Why is the cryptocurrency market down today?

The crypto market fell today as it failed to recover from the impact of a government crackdown in India.

Price of Bitcoin, the largest cryptocurrency on the market, is currently trading at $54,900 after hitting a record high of over $69,000 earlier this month.

Bitcoin and Other Major Cryptocurrencies Are Declining in Value


Bitcoin and Other Major Cryptocurrencies Are Declining in ValueCredit: AFP

Cardano, XRP, and Shiba Inu today also decrease, according to Coinmarketcap.

This comes days after India announced plans to ban all private cryptocurrencies – with some exceptions – and launch an official central bank-backed digital currency. aid.

While, Dogecoin and Ethereum down 7% and 4.44% respectively today.

Cryptocurrencies are highly volatile, meaning their value often fluctuates without warning, as the latest plunge shows.

Investing in cryptocurrencies is a very risky business.

You could be left with less money than you put in, and possibly even lose everything.

You may not be able to access your investment if the platforms go down and you may be left behind Cryptocurrencies cannot be converted back to cash.

In here we have also warnings around crypto-related scams, with people losing large amounts of money.

You should never invest in something you don’t fully understand, and you should never invest in money you can’t afford to lose completely.

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Why is the cryptocurrency market going down?

Apart from the news on India – cryptocurrencies have suffered a lot of volatility lately.

And there are a few reasons why.

One, Twitter’s CFO Ned Segal said investing in crypto “doesn’t make sense right now,” causing concern among Silicon Valley buyers.

China also announced a plan to clean up cryptocurrency mining, according to CNBC.

The country’s previous moves to crack down on cryptocurrency mining and trading have previously sent market plunges.

Meanwhile, the US regulator, the Securities and Exchange Commission (SEC), has stopped a list of funds that track Bitcoin prices.

If successfully listed, the fund will allow investors to enjoy any gain – or loss – on the Bitcoin price without having to hold the cryptocurrency directly.

But the exchange-traded fund (ETF) was rejected by the SEC, which is skeptical of cryptocurrencies.

Matthew Dibb, COO and Co-Founder of Stack Funds, tells CoinDesk Bitcoin is likely to fall even further.

“We have seen some of the larger sales happening on Bitfinex as well as the opening of new short positions,” he said.

“While the liquidations so far have been rather low by historical standards and funding rates are approaching flat, we could see BTC cool further in the short term as momentum is starting to falter. .”

Victoria Scholar, head of interactive investor investing, said last week: “In true form of price action, the notoriously volatile cryptocurrency complex has suffered a sell-off. significantly since there is no single base catalyst.”

Price plunge occurs after it hits all-time high but the cryptocurrency has been under pressure with rapidly accelerating losses this week, she said, sending Bitcoin and Ether down more than 13% from recent highs.

“From a technical perspective, Bitcoin broke a key support at $60,000, which could pave the way for further declines unless it can break back above this round number resistance.” She added.

“However, it is worth pointing out that while this is considered the biggest single-day sell-off since September, this drop only brings Bitcoin price back to three-week lows with a 33% drop. other. required to revisit the September bottom.”

5 Risks When Investing in Cryptocurrencies

The Financial Conduct Authority (FCA) has warned people about the risks of investing in cryptocurrencies.

  • Consumer protection: Some crypto-based high-return promotional investments may not be subject to regulation beyond anti-money laundering requirements.
  • Price volatility: Significant price volatility in cryptocurrencies, combined with the inherent difficulties in valuing cryptocurrencies reliably, puts consumers at high risk of loss.
  • Product complexity: The complexity of some crypto-related products and services can make it difficult for consumers to understand the risk. There is no guarantee that cryptocurrency can be converted back to cash. Converting a cryptocurrency back into cash depends on the demand and supply available in the market.
  • Fees and charges: Consumers should consider the impact of fees and charges on their investment, which may be more than the impact of fees and charges on managed investment products.
  • Marketing materials: Companies can overstate product returns or minimize the risk involved.

Kunal Sawhney, chief executive officer of stock research firm Kalkine Group, told yahoo finance that a 5% to 10% correction is “quite normal”, given the spike in trading last month.

Major cryptocurrencies fell before following a global sell-off in stock markets.

That comes after the struggle Giant real estate Evergrande in China raises broader concerns for the global economy.

With a huge debt pile, a business default can affect China more and it also raised concerns it could affect the cryptocurrency market.

China announced a ban on cryptocurrencies in September, when JP Morgan analysts also warned that the market was about to correct after a “retail investor mania.”

And in August, hackers stole 600 million dollars in a crypto heist after the discovery of a “vulnerability” in a blockchain website.

That comes after a series of worldwide crackdowns on crypto markets and another massive sell-off in global stock markets.

Many crypto mining regions in China are cutting operations altogether.

Miners Create New Cryptocurrencies using a complex computer code in a complex, energy-intensive, and computer-power-intensive process.

Authorities in China Southwest Sichuan Province ordered cryptocurrency mining projects to close earlier this summer.

This was followed by Beijing declaring war on Bitcoin mining and trading as part of a series of measures to control financial risks.

Iran has also banned cryptocurrency mining including Bitcoin for nearly four months as the country faces massive power outages and energy-intensive mining.

Coins took another big hit in April when Turkey’s central bank has banned the use of cryptocurrencies for purchases.

From Dogecoin and Litecoin to Bitcoin – Here are the different cryptocurrencies explained.

What is Dogecoin Cryptocurrency?

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Bobby Allyn

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