Bitcoin (price in india) increased to $37,391 (approximately Rs.27 lakh). Earlier it was falling at the rate of 7.5 per cent per day. But now this decline has come down to 5 percent per day.
Ether, the second largest cryptocurrency, jumped ten percent to reach $2,321 (approximately Rs 1.7 lakh). On Sunday, it had registered a decline of 86. percent, due to which it reached its lowest price in two months at $1,730 (about Rs 1.2 lakh).
The reason for the slowdown is believed to be minors who solve complex math equations using powerful computer machines. Due to this, some operations in China were affected in the wake of increasing scrutiny by the authorities.
Miners in China contribute 70 percent of this supply of cryptocurrencies. This is the reason why the talk of cryptocurrency ban arose in Beijing.
Major cryptocurrency exchange Huobi on Monday also shut down crypto mining and some of its trading services in China. Instead, he spoke of focusing on cross-sea trade. Market players said this would put pressure on prices as miners sell bitcoin on the balance sheet.
James Quinn, partner manager at Q9 Capital, said, “If they are taking those stakes back they will have to shrink their balance sheet in the short term.”
period of trouble
Crypto market players said that China’s decision to ban remains apprehensive.
Joseph Edwards, Head of Crypto Brokerage Research at Enigma Securities, said, “We can expect some stability over the next week but no one can say for sure what will happen next. The crypto market itself We are going through a very difficult time and the situation is very critical.”
Bitcoin saw some stability on Saturday when Tesla owner Elon Musk again tweeted about the cryptocurrency. In this tweet, he talked about supporting crypto between fiat money and crypto.
Bitcoin prices were down 25 percent last week. The reason for this was the strictness imposed by China regarding crypto. Although the price of bitcoin is showing an upward trend, it is still trading 45 percent below its peak value of $64,895 (approximately Rs 47 lakh) last month.
In February, Tesla unveiled its $1.5 billion (about Rs 10,990 crore) investment in bitcoin. After that bitcoin was accepted as payment for tesla which caused the price to skyrocket. But recently reversing the decision, Tesla rejected it as payment and its prices started coming down again.
On the other hand, talking about Ethereum, it has come down to half the price in a time period of just 12 days. Its peak value was $4,380 (approximately Rs 3.2 lakh) before the decline started. Simultaneously, small cryptocurrencies like Dogecoin also saw a decline.