Why Crypto Market is Down?

Crypto market got down sharply on November 16. There are cluster of reasons behind this fall. Here, we will investigate each of these reasons deeply.

At this moment, all well renowned and the oldest digital coins have showed dip in their trading. Bitcoin has plummeted to $58,703. But, letter on it come back to $60,066. While, other coins showed great dip, like Ether fall down 7.88% and trading on $4340, Dogecoin and Shiba Inu showed fall of 5.66% and 4.75%, respectively. Same is with other coins too.

Reasons behind the fall of Crypto Market

The very first reason is coming from the China. As recently China has crackdown against mining. The one of the top most economic regulation firms of China, National Development and Reform Commission (NDRC), had cleared its harsh intention regarding mining.

It cleared, that it will reduce and continue the restriction against crypto mining industries as it is one of the biggest reasons of energy consumption and carbon emission. This is indicating that one of the super powers is refusing acceptance of cryptocurrency. Same is happing in Kazakhstan.

The second reason behind the fall is the new bill passed by the President, Joe Biden. In the bill there is introduction of new definition for ‘broker.’ This could increase some tax over crypto traders. This step is taken by U.S. Government to increase their revenue more by introducing taxes over crypto trading.

The statement of CFO of Twitter, Ned Segal, is also the reason behind some dip in crypto market. Recently, he stated that the investment in crypto is senseless at this moment. The reason is its volatile nature. This affects the traders mind too, because The CFO and CEO of Twitters are the fan of crypto.

Another sad news is coming from India for Indian crypto traders that all private crypto currencies will remain illegal tender in India. As Indian Government will come up with an official digital coin. This news is confirmed by a letter to Sanju Yadav, VHP leader, Union Deputy Director.

The letter reads that there should be an Inter-ministerial committee constituted under the chairmanship of secretary economic affairs. This committee will pen-down all the problems in virtual currencies. And, prohibits all private cryptocurrency except any cryptocurrency that is issued by the State.

Another reason is the hackers, who had stolen hundreds of millions of dollars in cryptocurrencies.

Conclusion

The volatile nature of crypto is affecting the trading very much. This is increasing the risk factor for investors. Those who are investing for long-term at this moment are not getting as much profit. While, short period of investors is also being affected allot. Some of them earned huge profit and withdrawal their money. While, many of them having losses.

Overall, until or unless the volatility of crypto trading is not reduced, the issue of fall in crypto market will remain same. But this roller coaster experience is also the main reason behind the investment of investors.

If any of you want to invest in cryptocurrency but don’t know from where to start. Then you could contact to the experts of DeSoft Technology. They will guide you in trading as well as help you to make profit.

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Crypto market got down sharply on November 16. There are cluster of reasons behind this fall. Here, we will investigate each of these reasons deeply.

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Crypto market got down sharply on November 16. There are cluster of reasons behind this fall. Here, we will investigate each of these reasons deeply.