Cryptocurrency has been under rough weather for some time now. Unfortunately, unlike the past few months, there were record falls on Bitcoin and Ethereum prices. Even though investors knew that the cryptocurrency market is volatile and might come under destruction at a certain point, they still expressed anger and agony. But much to their sadness, the recent crypto crash wiped out about US$1 trillion in market value, a staggering drop from US$2.5 trillion just a week ago. Following the fall, many crypto investors planned to transact their crypto assets effectively. But all in vain! Major cryptocurrency exchanges like WazirX, Coin DCX, and others crushed under the overwhelming volume of transactions.
Initially, the cryptocurrency market experienced its first fall after Elon Musk's decision to not accept Bitcoin payments for Tesla cars. He was one of the biggest Bitcoin influencers of all time. Musk has always been very vocal about Bitcoin exchanges and supported the cryptocurrency. But suddenly, he announced his switch in plan and said his decision was solely based on climate concerns and bitcoin mining's impact on it. Immediately, after the announcement, Bitcoin's price fell to US$46,000 from its earlier price of US$54,700, a plummet of 12%. Ever since then, the global cryptocurrency market had a market capitalization of around US$2.2 trillion. As of today, the digital currency market has lost about 60% of the total market cap and stands at US$830 billion.
Fortunately, this weekend, bitcoin purchases have raised hope among crypto investors. Owing to the recent buying, Bitcoin, the world's largest cryptocurrency, has recovered to US$37,000 from US$30,000, its lowest price since January this year. However, experts predict that this was a much-needed fall for Bitcoin as investors crowded the digital currency market without validating its stability. They also insist that the fall is temporary and Bitcoin will bounce back to US$42,500 within a short period of time. However, the crypto experts also anticipate that Bitcoin will face resistance once it reaches the predicted price and will take time to reach a new record price. According to their advice, Bitcoin should be treated as an asset and long time investment. Crypto investors should look for long-term predictions before investing in Bitcoin.
Following Musk's statement and its impact on bitcoin price, some of the crypto enthusiasts came up with a decision to create a digital currency that can resist the tech entrepreneur's manipulation. A crypto community has launched 'StopElon,' a cryptocurrency that they say aims to take over Tesla and stop Elon Musk from manipulating the market. To the crypto investor's surprise, the digital currency market surged in a very short period and now has a total market capitalization of US$63,471,075.
The Chinese government has been reluctant to crypto exchanges ever since the digital currency market started attracting investors. Recently, Chinese officials went a step ahead and announced a ban on cryptocurrency usage in the country. The People's Bank of China put out a warning asking financial institutions to not accept digital currencies as payment or offer services using them. The Bitcoin price that was maintained at US$41,000, at the time, fell to US$37,000. Many other cryptocurrencies followed the suit.
Unfortunately, this is not the first time China is limiting its citizen's crypto exchanges. Ever since the cryptocurrency market came to its sight in 2013, they said that bitcoin was not a real currency and banned financial institutions from using it. Although individuals can hold or trade cryptocurrencies, major exchanges in China have shut their doors for the mushrooming source of investment. Around 70% of bitcoin mining practices take place in China. Despite the regulations, China continued to be the largest market for crypto mining overall, but not anymore. The recent statement by China proved their stronghold to resist cryptocurrency exchanges. As a downside, the country is also launching a state-backed digital yuan that would keep money flows under strict surveillance. The government of China's Inner Mongolia Autonomous Region, one of the biggest crypto mining spots, has kept May 19 as a deadline for citizens to stop crypto mining.
When it comes to the cryptocurrency market in India, the country is neither for nor against it. The efforts to bring in regulation or totally wipe out bitcoin exchanges in India are still in talks. However, private institutions, banks, and payment platforms are slowly wiping out cryptocurrency exchange options in their entity. Recently, Paytm joined the club. Paytm cuts off all ties with major cryptocurrency exchanges like WazirX and more. Previously, ICICI and Yes Bank distanced themselves from crypto-related transactions.
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