Bitcoin has already suffered a lot due to the tweets posted by Tesla owner Elon Musk, and now the new regulations imposed by China have taken a toll on the bitcoin’s price once again. China cracked down on crypto mining and trading, which affects the already bruised market cap of bitcoin. If you want to get rich while sitting at your home, you can use bit-iq.io for trading bitcoins. You can read more about it in the following paragraphs.
China says that bitcoin needs to be regulated more
Bitcoin’s market value got damaged a lot after China started getting strict over crypto use and imposed some strict restrictions on bitcoin mining and trading. The primary reason behind this move from China is the financial and speculative risks faced by people and the government while using bitcoins.
The top official of the financial stability Committee of China stated that there is an urgent need to impose more strict regulations on bitcoin as it is highly volatile and can cause massive financial damage for the users. After the announcement came from china, bitcoin tumbled once again after recovering a bit from the downfall that occurred on 19th May.
Earlier, it was holding the position at $40000, but after the restrictions imposed by China, a lot of investors withdrew their money from bitcoins, and its value came down to $37033, suffering a loss of 9%. It is pretty shocking to know that bitcoin hit its all-time high in mid-April when it touched the $65000 figure, but after that, it has been continuously tumbling down and has declined 42% in over a month.
The Chinese authorities have strict instructions to its banks and payment companies to stop providing crypto services and minimize the use of digital currencies such as bitcoin. It is the first time when a government has directly targeted bitcoin mining. China also made it clear that crypto exchanges can operate in Hong Kong, but they will have to first obtain a license from the market regulator and would be able to offer their services to professional investors only.
Over $600 billion of bitcoins got vanished
The recent ups and downs in the bitcoin market affected investors to a great extent. It didn’t only affect the investors, but the market cap of bitcoin also got decreased by a whopping $600 billion and tumbled down to $1.9 trillion. There are numerous factors that played an essential role in wiping out of bitcoin’s market cap, and one of the most primary factors is Elon Musk. Elon posted few tweets, and in some of them, he supported bitcoins, whereas later, he criticized it for the harmful impact of bitcoin mining on the environment. It changed the mind of investors, and a lot of them sell off their investments which led to the market collapse, and bitcoin came down to $38000.
Recovery is possible, but it will be slow
According to the experts, it is not the first or the last time we have seen bitcoin falling from its peak. Bitcoin has plunged over 50% in a month, which is a massive concern for investors. If we have a look at the past of bitcoin, it is quite difficult for it to recover quickly. Bitcoin has fallen from the top rapidly, but when it comes to recovering, it will take way more time. There are some chances of recovery for the most prominent cryptocurrency, but the speed will surely be slow as it cannot recover as quickly as it crashed. So, if you a long-term value investor, you may hold your position patiently and wait for some time while bitcoin recovers and gains back a strong position in the market.
Paytm stops offering services to Indian crypto exchanges
Despite all the fluctuations going in the bitcoin market, crypto investors in India face another setback after that Paytm Payments Banks announced that it would no longer offer any banking services to the cryptocurrency exchanges over the Internet such as CoinSwitch, WazirX, etc. Now it has become quite difficult for the Indian Crypto industry to find banking partners, and crypto investors in India will have to suffer a lot because of that. However, some exchanges stated that soon they would be adding new payment methods to make deposits. Until then, the only way through which users can add funds to the exchange is through peer-to-peer transactions.
