Biggest fall in the cryptocurrency market in a single day.
What has happened?
The cryptocurrency market Wednesday saw a significant correction with prices of major currencies, including Bitcoin, Ethereum, BNB, among others, crashing as much as 30% within 24 hours.
Virtual currencies are retreating so broadly and sharply, So, the cryptocurrency boom is durable.
CoinGecko tracked 7,000 tokens has to reduce $600 billion, and now the overall cryptocurrency market stands at $1.9 trillion.
The backdrop of the Chinese regulators announced a crackdown on cryptocurrencies Tuesday. What has China announced?
China has forbidden financial institutions and payment companies from providing any services related to cryptocurrency transactions.
This means any payment channel cannot accept any cryptocurrency.
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China had a ban in 2017 as well but compared with the previous ban, the new rules ban cryptocurrency entirely in China. The cryptocurrency’s received a bull run. That’s why the crypto trading increased in China. That’s why the Chinese government says that people’s property is not safe and disrupts the normal economic and financial order.
China says cryptocurrencies are a potential threat to fiat currency.
Meanwhile, the previous year China launches its own digital currency.
For China’s step, Bitcoin, the most popular cryptocurrency globally, lost 30% to $31,000.
Ethereum, the second-largest cryptocurrency, is falling 40%.
Dogecoin lost 45%.
Is China’s announcement the only reason behind the cryptocurrency crash?
China is not the only reason behind the cryptocurrency crash. Elon Musk announced that Tesla wouldn’t be accepting Bitcoin as payment for car purchases. But earlier, Elon Musk support Bitcoin. Elon Musk tweeted that ” It is high time there was a carbon tax!” and also says cryptocurrency is a good idea, but this cannot come at a great cost to the environment.
A crackdown by one of the world’s biggest economies notwithstanding, those in the ecosystem have termed this decline a short-term correction.
Such as corrections are mainly due to short-term traders taking profits.