The cryptocurrency market is considered one of the most volatile trading markets of all time, with leading cryptocurrencies like Bitcoin, Ethereum, Dogecoin, and many others shows a significant fall in prices. The world’s most expensive cryptocurrency, which is also the topmost in terms of market capitalization, has gone down in value by almost 30%. It happens since the announcements by the China Banking Association on regulating the trade of cryptocurrencies throughout the Chinese landscape. Until recently, China was the topmost contributor of cryptocurrency trade and mining, with over 90% of the worldwide trade being conducted there. All this changed after the regulators tightened the scope of cryptocurrency mining and trading within China.
The losses on Bitcoin tokens narrowed to about 10% from 30% within a day but still lost close to $70 billion in monetary valuation within just 24 hours. After Tesla CEO Elon Musk announced, they will not be accepting cryptocurrencies as a form of payment for their automobile division due to the lack of sustainable and energy-efficient mining of cryptocurrency, leading to being a worthy cause for environmental dissipation. China, to decrease the climatic problems in the future and to promote their digital currency Yuan, has made this decision to demotivate the Chinese people to divert away from cryptocurrency trades.
The Chinese regulations and Elon Musk’s announcements have collectively caused a snowball effect, which has caused the token prices for the most favored cryptocurrencies across the globe to fall significantly. In March this year, Tesla had started accepting Bitcoin as a mode of payment for its cars, which had caused the cryptocurrency market to boom. Elon also supported a new cryptocurrency Dogecoin in most interviews, live appearances, and his Twitter feed. This made Dogecoin popular among the trading community, and every bit of action by Elon seemed to alter the trade value of this new cryptocurrency.
Almost all of the cryptocurrencies, including Dogecoin, Bitcoin, and Ethereum, are falling at an alarming rate. The cryptocurrency market’s future seems in danger as more and more countries are turning their backs to unregulated and decentralized trade practices. With the ongoing trouble in India due to the unclear and uncertain approach to move forward with cryptocurrency along with China joining the list of countries to revolt against the cryptocurrency trade practices altogether, the speculations of cryptocurrency being the future of trade seem unreal in today’s scenario. Regardless of the losses these cryptocurrencies face, their traders and investors are still hoping that the fall will prove to be a temporary hurdle in the journey to significant profits in the near future.