From going to the moon and back on earth! It was surely a quick bumpy ride for Crypto Market in the past two weeks or so.
The Crypto market has crashed badly and investors are running in circles whether to sell or invest more. It fell from more than 3-month lows on Wednesday, dropping to about $30,000 at some point. Ethereum Blockchain Network was also down sharply and broke below $2,000 at one point, a more than 40% drop in less than 24 hours.
Other digital currencies such as Cake, Dogecoin (that just landed from the moon) on the other hand, have lost as much as 22% and 24%, respectively.
Things are a bit clumsy at Crypto, a few days ago Binance World’s largest Crypto Exchange was under investigation by IRS and DOJ. Not only that, but Elon Musk U-turn saying “Tesla won’t be accepting Bitcoin” also contributed a 10% downfall to Bitcoin including a $20 Billion downfall in his own wealth.
Talking about the recent market downfall, it was due to the courtesy of China, which is developing its own government-run cryptocurrency, reasserted its rules against other digital currencies. Beijing, the capital of China has banned banks and firms to accept payments and transactions via Cryptocurrency. No crypto services in China. period!
In case you don’t know, Cryptocurrency is illegal in China since 2019 in order to resist money laundering and other cybercrime-related issues. Since the Chinese are way too good in technology they are still able to trade in online currencies such as Bitcoin due to which Beijing has some concerns.
As reported by BBC. On Tuesday, the National Internet Finance Association of China, the China Banking Association, and the Payment and Clearing Association of China issued a warning on social media.
Consumers would have no protection if they were to incur any losses from crypto-currency investment transactions. recent wild swings in cryptocurrency prices seriously violate people’s asset safety” and are disrupting the “normal economic and financial order.”National Internet Finance Association of China
“China has for some time been putting pressure on the crypto space, but this marks an intensification – other countries might follow now as central banks make strides towards their own digital currencies.
“Until now, Western regulators have been pretty relaxed about Bitcoin, but this might change soon.”Neil Wilson – From Markets.com
One of our very famous Rory Cellan-Jones’s analysis sums of this whole scenario,
“Unless and until Bitcoin can be used to buy a sandwich, or be accepted by your friends when you pay them back for a restaurant meal, then it is likely to remain just a playground for geeks and gamblers.”
Still after many years of crypto, it is still virtually impossible to buy a sandwich with Bitcoin.
From the consumer’s perspective, Crypto Experts think that it’s the best time to invest because of such low market rates and hold for a long time to earn bigger profit. But judging from this whole seesaw, we can’t predict what will happen next.
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