Crypto markets are marketing that trade in cryptocurrency, digital assets that can be used as alternatives to fiat currencies. Cryptocurrencies are digital assets that use cryptography to secure and transfer information and coins between users without the need for a central authority. They are created and stored on blockchain technology like Ethereum, Bitcoin, Ripple, etc. The crypto market is a new sector of the financial industry for investors, traders and other stakeholders who want to get involved in trading or investment in cryptocurrencies or crypto assets. It’s the trading of virtual assets such as bitcoin and other cryptocurrencies which can be converted back into traditional money at any time.
The crypto market has been a big topic of debate over the last few years. Initially, the crypto markets were seen as a legitimate way to make money but as time went on, they became more and more speculative. A major driving force behind this was the emergence of ICOs which drove people to invest in cryptocurrencies without any understanding of what they were investing in. This led to tensions from governments and regulators who believed that these unregulated investments could be dangerous for investors. In 2018, things have been looking up for cryptocurrencies with their prices going through cycles of highs and lows with no major changes in regulation coming into play. There is a lot of uncertainty around where the future will take the crypto market. But currently, it has been noticed that the crypto market has dropped down.
Why the crypto market is down today in 2021?
According to Coin Metrics, the world’s most protuberant cryptocurrency in the market, Bitcoin pared losses after the last changing hands which is around $49,663 (INR 37, 65,175 approx.). Just within 24 hours the price of Bitcoin down to $47,000 (INR 35, 64,480 approx.) from $57,000 (INR 43, 22,395 approx.) which is a loss of around $10,000 (INR 7, 58,315 approx.). From a few resources, it also has been heard that the loss is even more than 17%. And not only Bitcoin, another one of the most popular cryptocurrencies, Ether’s price has also dropped which is around 16%.
Several factors have caused this downfall of the crypto market. One of them is cash withdrawals of crypto investors. Cryptocurrency is a digital currency, there is no legal validity on this currency. So, there is a huge risk while conducting crypto trading. Therefore, large businesses and other crypto investors put out all the invested cash on crypto trading. Governments of the different countries are imposing a diverse range of limitations on crypto trading which has caused panic among the crypto investors which push them to withdraw all the cash. Additionally, in the Indian market, in the last few months, the crypto market fall drastically because the Central Government has publicly announced that the Indian Government will ban private cryptocurrencies in India very soon. Therefore, panicked crypto investors are taking back all assets from the market which has caused this sharp downfall of the crypto market.
Also Read: Cryptocurrency Trading in India