Big volatility is again being seen in the price of bitcoin. After creating a new peak on 14 April, this cryptocurrency is now trading well below its highest level. Earlier in February, bitcoin had broken 26% in just one week after attaining the peak. Let us understand what is the reason for its price weakness this time?
Despite the decline, the Bitcoin price is 84% higher than at the beginning of the year.
Bitcoin dropped by more than $ 11,000 in just 8 days:
The price of bitcoin reached an all-time high of US $ 64,863.10 on 14 April. Currently it is around $ 53,520. In this way, the world’s most popular crypto currency has fallen by $ 11,333 or 17.5% in just 8 days. After touching a new high on Wednesday, bitcoin fell by around 14% on a single day on Sunday. This was the biggest intra-day fall in the currency in one day after February. Bitcoin also reached its 3-week minimum levels.
What is the reason for the fall in price?
There have been many reasons for the bitcoin price to fall after touching record levels. The crypto market is showing pressure due to these concerns of investors.
The power cut in the Xinjiang region of China had a major impact on the speed of crypto mining. More than 20% of the world’s crypto mining takes place only in this region. After the news of this to investors, there was a spurt in sell-off. However, experts say that these power cuts have no major impact on the capacity of the bitcoin network.
Investigations of the ban by the Turkish Central Bank as a means of payment of cryptocurrency in the country also worried investors. There are speculations that such steps can be taken by other countries as well.
Sunday’s major intra-day decline was reported by the US Treasury to be a possible money laundering action for financial companies engaged in cryptocurrency trading. This news is not confirmed, but according to experts, it had a big impact on the market.
CNBC republished a month old article about the crypto currency ban in India. This article was taken as an update and the investors took care.
Despite the ever-increasing acceptance among Bitcoin investors and Institutional Investors, a lot of experts consider it to be overvalued. In such a situation, large profit booking was seen by investors for profit at higher levels.
The listing of Coinbase had reached a record level:
The news of good listing of crypto exchange ‘Coinbase’ helped bitcoin to reach its new record level. With the listing on Nasdaq, the valuation of Coinbase reached above $ 100 billion for the first time. Experts believe that the good listing of Coinbase has strengthened the acceptance of cryptocurrency among investors and this will create an environment in favor of cryptocurrency.
Ethereum, binary coin, etc. are also victims of volatility:
Not only bitcoin, other cryptocurrencies have also continued to ride bullish sentiments in the past. Ethereum, the most popular cryptocurrency after bitcoin, achieved its peak level at any time only 6 days ago, ie on 16 April. Similarly, Binance Coin, which comes at number three, also achieved its highest level 10 days ago. However, in the last week, like Bitcoin, the price of these crypto currencies has also seen a big decline. Ethereum is trading 6.43% down from its peak on the morning of 22 April, while Binance Coin is trading down 15.14%.