Here are the reasons for the decline in cryptocurrencies, know everything

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There was a lot of volatility in the digital currency market on Wednesday. On May 19, almost all major cryptocurrencies including bitcoin, ethereum, dodgecoin saw a decline of up to 30 percent. The cryptocurrency market was witnessing a slow decline for the past few days, but the news of a ban on cryptocurrency transactions from China turned the crypto market into Black Friday on Wednesday.

On Tuesday, China asked its financial institutions and payment companies to conduct cryptocurrency-related transactions or any other type of service. Restricted done. This simply means that banks and online payment channels can no longer offer any services related to cryptocurrency to customers. Now, what was then, as soon as this news came in the market, panic selling started and within a few hours many cryptocurrencies including Bitcoin, Ethereum, Dogecoin, Litecoin, Shiba Inu fell on their heads.

Let us tell you that China had imposed a similar ban four years ago in 2017, but now the new rules implemented in this new ban have limited the services even more. With this, the real value of the virtual currency has become lighter than before.

According to crypto trade platform Binance, at 7 pm (IST) on Wednesday, Bitcoin (BTC) was trading 21 percent down from its 24 hours ago price of $34,693.1 (about Rs 24,97,903). At the same time, another popular crypto coin, Ethereum (ETH) was trading down 25 percent at $2,453.15 (about Rs 1,76,626).

However, China cannot be blamed alone, as the cryptocurrency market has fall Been seeing it for the past several days. Last week, Elon Musk, the owner of electric car maker Tesla and the world’s second richest man, said this. Declaration It was announced that Tesla would no longer accept bitcoin as a payment mode for the sale of its car due to environmental damage. Whereas, about a week before this, Musk approved the use of Bitcoin as a payment form at Tesla. Somewhere along the way, this is also one of the reasons why cryptocurrency investors have fallen into a state of confusion.

Elon Musk has been showing interest in crypto for a long time. Initially, he used to praise Bitcoin very much, but since the arrival of the meme currency Dogecoin, he was constantly tweeting about this new coin. Making a U-turn by talking about taking bitcoin and its impact on the environment and working with the creators of dodgecoin to make the system better than before. Certainly, these can be some of the many reasons for the earthquake in the market.



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