Bitcoin dropped two week low of $22,375
Bitcoin fell to its lowest point in roughly two weeks as part of a broader slide in the cryptocurrency markets as investors processed the disintegration of a crucial industry payments network.
A variety of changes in the cryptocurrency market, including the news that crypto-friendly bank Silvergate was halting its crypto payment network, caused a drop in the price of bitcoin and several other cryptocurrencies last week.
The market’s trading patterns were updated on Monday, and Bitcoin saw a negligible 0.08per cent increase. The most popular and expensive cryptocurrency maintained its price of $22,375 during the weekend (roughly Rs. 18.3lahksh). On both domestic and international markets, the cost of BTC has stayed relatively close to this threshold.
The crypto price tracker shows that stablecoins Tether, USD Coin, and Binance USD all made marginal profits of less than 0.30per cent.
Throughout the weekend, most cryptocurrencies stayed in the red as traders tried to process the Silvergate-related uncertainty. A few days ago, BTC was trading below the established support levels.
Despite this, traders and investors are optimistic about this week’s release of favourable economic statistics from China. The CEO and co-founder of Mudrex, Edul Patel, believes that such encouraging news may prompt them to reenter the market.
On Monday, the cost of the second-most costly cryptocurrency after Bitcoin decreased. At the time of writing, it is worth $1,561 (approximately Rs. 1.27 lakh), down 0.38per cent.
On Monday, the values of Shiba Inu and Dogecoin both decreased. The value of the entire crypto market fell by 0.58per cent over the past 24 hours. The global crypto market cap is $1.02 trillion, according to CoinMarketCap (roughly Rs. 83,70,510 crore).
Silvergate, a problematic cryptocurrency-friendly bank, revealed last week that its network for crypto payments had been suspended. Since numerous community members withdrew their assets due to a low-risk appetite, the bank reportedly lost crypto deposits worth over $8 billion (approximately Rs. 65,450 crore).
In order to find a way out of the financial crisis, the California-based US bank is currently analysing its records with auditors. The Silvergate upheaval is developing is similar to what happened to the now-defunct FTX cryptocurrency exchange, which raised concerns among cryptocurrency holders about the risks of financial instability and sparked the current market slump.
Bitcoin
Bitcoin is digital money that runs on a decentralised network, which means a single organisation does not govern it. Under the alias Satoshi Nakamoto, it was developed in 2009 by an unidentified person or group. To protect and validate transactions on its network, Bitcoin utilises cryptography.
The blockchain is a public ledger where bitcoin transactions are kept track of. A global network of computers is used to maintain the blockchain, a decentralised database. A network of computers called nodes verifies a transaction as soon as it is made. The transaction cannot be changed or removed after it has been confirmed and uploaded to the blockchain.
Its restricted supply is one of Bitcoin’s distinguishing characteristics.Twenty-one1 million bitcoins are the maximum number that will ever exist. Due to its rarity and reputation as a store of value, Bitcoin has been compared to gold. Unlike gold, Bitcoin can be quickly transported worldwide in minutes.
A second characteristic of bitcoin is volatility. Large price swings have been known to occur in a matter of hours, and their value has been known to change drastically. One of the factors that some individuals consider when evaluating Bitcoin as an investment is its volatility.
A cryptocurrency exchange is required to purchase and sell Bitcoin. You can buy and sell Bitcoin on these exchanges using conventional currencies like US dollars or euros. Additionally, if a business accepts Bitcoin as payment, you can use it to buy its products and services.
There are certain drawbacks to using bitcoin. The fact that it can be used for unlawful operations like money laundering and drug trafficking is one of the theoretical objections. Bitcoin backers counter that it is no more vulnerable to these crimes than regular money is.
The energy usage of bitcoin is a different criticism. It takes a lot of computational power to mine bitcoins, which are added to the blockchain after they have been verified on the network. Concerns regarding Bitcoin’s effect on the environment have arisen because of how much energy its computer power uses.
Despite the negative press, Bitcoin has amassed a sizable following over time. For some, its decentralised nature and scarcity have made it a desirable investment, while for others, its simplicity of use and worldwide reach have made it a well-liked payment method. As the world gets more digital, Bitcoin and other cryptocurrencies will continue to play a more significant part in our financial system.
Why is the Bitcoin price low?
It can be challenging to isolate one particular cause for Bitcoin’s price falling at a given time because so many different things can affect its volatility. Yet, the following list of factors could be behind the recent price drops:
- Market sentiment: As cryptocurrencies like Bitcoin are notoriously volatile, a change in market sentiment might send values sharply up or down. Bitcoin and other digital assets may be sold off if investors and dealers feel increasingly pessimistic about the cryptocurrency market.
- Regulation worries: Governments worldwide are currently debating how to regulate cryptocurrencies, and investors may become uneasy if they are unsure of the restrictions that may be implemented. For instance, some investors have expressed alarm over recent efforts by China to impose more regulations on cryptocurrency mining and trading.
- Environmental issues: Since bitcoin mining uses a lot of energy, some investors might be less likely to invest in cryptocurrencies with a high carbon footprint as concerns about climate change increase.
- Technical variables: Technological issues, such as adjustments to the Bitcoin codebase or adjustments to the network’s hashing power, can also impact the price of Bitcoin.
It’s important to remember that cryptocurrency markets are quitprettyculative and that several reasons can cause values to change quickly. When purchasing Bitcoin or other cryptocurrencies, investors should be ready for the possibility of significant price fluctuations and consider their risk tolerance level.
edited and proofread by nikita sharma
