The prevalent cryptocurrency bitcoin remains in the news. At first, this digital currency created new peaks. On the contrary, now its price is becoming less. On Sunday, February 28, the this Cryptocurrency price reached $ 43,165.78 after a big drop of 6.39%.
Bitcoin touched its record level of $ 58,354.14 on February 21. Within a week, this cryptocurrency has now come down by about 26%.
What is the reason for the drop in prices?
Like the stock market, the impact of increasing bond yield is being seen on bitcoin and other cryptocurrencies. There is still a lot of uncertainty regarding the validity of this Cryptocurrency. Because of this, among investors who are inclined towards safe investment, bitcoin is looking to exit from an investment after the bond yield increases.
Elon Musk’s statement is also being cited as the reason for this stir in the cryptocurrency market. Musk had said about Bitcoin and its adversary ether that ‘their prices seem to be going up’.
Shares of Musk’s company Tesla fell 8.6% on February 22 after commenting on cryptocurrency, which reduced their total assets by $ 15.2 billion ($ 1500 million).
Why was bitcoin seen so fast?
The attention of the entire world came after Elon Musk’s company Tesla made a major investment of $ 1.5 billion in bitcoin in early February. Even before this, with the support of financial sector experts from time to time, its price kept rising. In May 2020, well-known fund manager Paul Tudor Jones described this Cryptocurrency as a good asset for the store of value.
There was also news of the possibility of a large investment in bitcoin by Morgan Stanley investment company Counterpoint Global. this Cryptocurrency has also been joined by giants such as MasterCard, Twitter CEO Jack Dorsey’s payment company Square, BNY Melan, asset manager BlackRock.
What do we know about the validity of bitcoin in India?
There are indications of the Government of India bringing a ‘Cryptocurrency and Regulation of Digital Official Currency Bill, 2021’ in the budget session itself to ban bitcoin and other cryptocurrencies. Existing investors can be given 3 or 6 months to withdraw from this Cryptocurrency investment.
The RBI is considering to bring its own digital currency in India. Concerns of control-free currency like bitcoin have shown such a stance in many central banks around the world. Such currencies are being called Central Bank Digital Currency (CBDC).