Latest News- Reasons for the sudden sharp fall in Bitcoin prices

The trend so far indicates upward growth, peaking at nearly 47.3 lakhs in April. However, due to fallacies in the international market, Bitcoin has been in a re

While the digital trading scenario picked up a lot of momentum in 2020, this year has had everyone biting their nails with the ever-falling rate. A nearly 40% drop in the price of Bitcoin according to the latest news report, from its all-time high, shows the volatility that goes with dealing in these markets.

To understand why the price of Bitcoin is so low, let's understand how it works. This digital currency is not affiliated with a bank or any government. It allows users to spend money anonymously and the coins are created by users who "mine" these by granting the computing power to confirm the transactions of other users. In simple terms, Bitcoins are lines of computer code that are digitally signed as they are passed from one owner to another.

The trend so far indicates upward growth, peaking at nearly 47.3 lakhs in April. However, due to fallacies in the international market, Bitcoin has been in a recession for a while now. Analyzing the recent news reports let`s find out what factors affect reduced Bitcoin prices:

Tesla Inc,Elon Musk,Bitcoin/USD Bitstamp,Technology,Cryptocurrency,Currency markets,Markets,World Markets,Bitcoin,Elon Musk,Coinbase Global Inc,Bitcoin/USD Coin Metrics,business news

China's ban on cryptocurrency transactions:

With the warnings issued about speculation in cryptocurrency trading, China has imposed a ban on all institutions that provide services related to the implementation of cryptocurrency transactions. Due to the boom in the digital trading market and the restrictions in the government regulatory environment, according to news reports, that have limited the global investment scenario, the value of these cryptocurrencies, in particular Bitcoin, is falling in the line of the graph.

Elon Musk`s Famous remarks:

Elon Musk, a full-fledged cryptocurrency supporter, announced in February that Tesla had invested $ 1.5 billion in Bitcoin and in March, Tesla began accepting payments in Bitcoin.

However, the CEO recently tweeted that the company might be considering selling its cryptocurrency holdings, driving the digital trading market on a wave. As of May 13, Elon tweeted that he would no longer accept Bitcoin for cars purchase, causing a 17% drop in Bitcoin.

His change in stance on bitcoin caused a price movement in the cryptocurrency in the last month and was great pressure on the price drop. Bitcoin is creating lots of News Headlines nowadays for its sudden downfall.

Government regulations to gain investor trust and protect their funds will reduce the volatility that Bitcoin continues to represent. Creating a comprehensive investment plan and conducting a well-thought-out analysis before investing in any cryptocurrency is essential for an investor when making informed decisions.

Also Read: Snapchat launches editing tool, gifting, and marketplace for creators

  • Share
logoSubscribe now