On September 22, cryptocurrency values remained in the red. The global cryptocurrency market capitalization is Rs 136.32 lakh crores, down 2.42 percent from the previous day, while the entire crypto market volume is Rs 10,08,282 crores, down 11.2 percent.
Bitcoin’s price is currently Rs 33,47,000, and its market share is 42.91 percent, up 0.47 percent. The cryptocurrency has yet to rebound to its pre-flash crash value of $47,000, which wiped away roughly $200 million from the crypto market.
Since yesterday, the overall crypto market has lost around 2% of its value. Most cryptocurrencies, including Ethereum (ETH), Cardano (ADA), and Solana (SOL), are still down between 1% and 5% from their previous highs.
China concerns: It comes after recent market crashes triggered by things that the billionaire entrepreneur said: “We are concerned about rapidly increasing use of fossil fuel for Bitcoin mining and transactions, especially coal, which has the worst emissions of any fuel.” and China’s crackdown on ICOs, block exchanges, and warnings against speculative trading.
China struck a further blow when it ordered Bitcoin mining in its Sichuan province to be entirely shut down, as well as telling banks to stop accepting crypto transactions.
Volatility is a continuous factor: One of the main disadvantages of Bitcoin and cryptocurrencies, according to experts, is the high level of uncertainty and volatility associated with them. “On both sides, there is an equal number of people who love Bitcoins and those who believe it will lose value in the future. Youngsters who want to experience a high in trades seek volatile asset classes where its future has the potential to replace gold or the US dollar as a haven. On medium-term charts, Bitcoin seems to have made a lower top as long as the recent top of 53,000 is not breached. If this pattern plays out we could see Bitcoin falling towards the earlier low of 29,300 overtime.
Concerns associated with regular changes: Bitcoin and crypto-asset classes will continue to be volatile due to a variety of variables, the most important of which is the legislative outlook on investor protections in the crypto asset class. Currently, fiat currency and fiat assets are guaranteed by the central bank’s guarantee, which is causing investors to significantly bet on equities class assets internationally as a result of quantitative easing and asset expansion. SudinBaraokar, Global IT and Innovation Adviser stated, “This actual asset class increase is 500 times larger than the size of the Bitcoin and crypto market.”
Network glitch: Bitcoin’s price plummeted to $5,402 this week, according to one platform.
Pyth, which is used by Wall Street traders, experienced a network outage, causing the cryptocurrency to drop by about 90%.
Though Pyth has yet to disclose any details regarding the incident beyond a brief statement, the issue appears to have sparked a sequence of liquidation events, which would have had a negative influence on bitcoin’s true price.
The platform stated, “Engineers are continuing to examine the problem, and a complete report is in the works. “This has decreased the price of the crypto market and caused it to reduce.
Cryptocurrencies are viewed as a viable alternative to traditional banking techniques, as they are less expensive to transfer money due to their lack of regulation by the government or its banks. Some analysts believe that the recent price drop is part of a longer-term trend, while others believe that any short-term volatility will be forgotten when bitcoin reaches new all-time highs in 2021.
But these numbers likely underestimate the actual volatility of Bitcoin considering crypto trades 24 hours a day, seven days a week. It’s much harder to sleep well at night as an investor when markets are always open, and potentially crashing.