Bitcoin Crashes as its price tumbled by about $25 billion in the past 24 hours
Crypto market has been suffering at large due to a number of reasons since past few days. This time, it’s the biggest cryptocurrency, Bitcoin that has faced huge price crash. In last 24 hours, Bitcoin price has fallen by about $25 billion, creating suspense, stress, as well as opportunities for crypto enthusiasts.
Bitcoin price crash
Bitcoin price nearly hit $20k on 18 January before tumbling down to its lowest. It has now shed about 56% of its peak price, dropping to as low as $8,394 this morning.
Past few days have been witnessing swings in Bitcoin price. According to CoinDesk, Bitcoin opened at $9,052.58 on 02 February and dropped to $7,695.10 at around 12:49 UTC. It then recovered to about $8.933 at 16:30 UTC, still being on the lower side of the graph. These price swings have been making trading extremely volatile, making rooms for the bubble that could burst anytime.
Why is Bitcoin falling?
Considering the financial security risks associated with cryptocurrency trade, several economies of the world have announced a ban and stricter regulations. Yesterday, Finance minister of India, Arun Jaitley announced his strategies to eliminate the use of digital currencies as a payment system.
“The Government does not consider cryptocurrencies legal tender or coin and will take all measures to eliminate the use of these crypto-assets in financing illegitimate activities or as part of the payment system.”-Jaitley.
Similar impositions and announcements regarding ban have been made previously by many economies including China, Indonesia, and South Korea. Analysts believe that such restrictions on cryptocurrency regulation lead to huge impacts on digital currency’s price.
However, Ajeet Khurana, the head of the Blockchain and Cryptocurrency Committee of India (BACC) tries to clarify the statement of the Finance Minister as he says
“What the Finance Minister might be saying is that cryptocurrency is not considered to be a part of these payment systems. “Similarly, gold is not part of a payment system, but people still barter assets like gold for goods, as long as both parties record the transaction. It is an asset barter transaction.”-Khurana.
But market analysts like Miles Eakers, the chief market analyst at Centtrip believe that the recent price crash followed Jaitley’s comments and restraints may make Bitcoin suffer a further drop.
“The drop followed comments made by India’s Minister of Finance, Arun Jaitley.." “We anticipate there will be more of such protectionist regulation. This is likely to put Bitcoin under more strain, causing it to drop to the $8000 a coin level.”- Eakers
Along with widening the doors for newer opportunities, these price swings are making people realize the volatility of this investment option. The other cryptocurrencies including Ripple and Ethereum have also been facing similar price crashes, altogether making cryptocurrency market, highly vulnerable.