Interesting declines are taking place in the crypto market. However, cryptocurrency owners are asking why this consideration. Why crypto market is down today, why is crypto down today? Here are the details…
There are uncertainties about when the sharp decline of crypto coins, which has replaced the rapid increase in recent days, will end. Cryptocurrency investors and producers are hesitant to exchange their cryptocurrencies.
According to economists, this sudden decline in crypto currencies started with the comments made by the economy ministers in European countries, and it is said that those who exchanged virtual currencies in their hands affected this decrease. The volatile and volatile nature of the crypto money market has also fueled this situation.
As the reason for the rapid decline in crypto currencies, there was some resistance break after investment resources and rapid growth, and as a result, crypto money investors exchanged their possessions for fear of loss.
Why crypto market is down today?
There are many reasons why Bitcoin and other cryptocurrencies are falling in value. Regulation, security problem in cryptocurrencies, government intervention and the risk of leakage as a result of cyber-attack are among the main reasons.
The statements made by the governments of South Korea, India and China in January were one of the biggest factors in the shaking of the crypto currency exchange. In the comments made by these countries, it was spoken that new regulations would be made on cryptocurrencies . On top of that, $533 million worth of Bitcoin was stolen as a result of the cyber attack on the Coincheck company.
Bitcoin and other cryptocurrencies fell sharply, with the Minister of Finance of India saying they would make the use of cryptocurrencies illegal. As a result of such statements made against virtual currencies, there were serious decreases.
External Factors That Cause Cryptocurrencies to Fall
- Credit Card Invalid When Buying Crypto Money: All banks in the UK and Lloyds Banking in the USA have created various barriers by turning down their customers who want to buy Bitcoin with their credit card. A similar situation occurred in the financial institutions of the USA. Bank of America, Citigroup and JP Morgan Chase reported that cryptocurrencies can not be purchased with credit cards.
- Use in Illegal Transactions: Bitcoin, which is frequently used for illegal money smuggling and drug exchanges, due to transaction confidentiality in trading transactions; The trust in Bitcoin as the preferred choice of real estate robbers and digital fraudsters has led to a dramatic decline. The measures taken as a result of such illegal transactions, which have become widespread recently, are increasing day by day.
- Regulatory Lack: The most important reason why Bitcoin is not viewed in moderation in country governments is that they cannot intervene in crypto currency exchanges. For this reason, many governments are making negative statements about Bitcoin . Governments that prevent cryptocurrencies from being stored and backed by valuable assets are trying to make cryptocurrencies ineffective.
- Facebook Ad Ban: Facebook rejected ad requests for cryptocurrencies and recently banned advertisements in this area. He also said he would make this ban on Instagram.
- Judicial Process Tracking: Following the investigation decision opened as a result of the hacking of Tether (USDT), many investors converted their cryptocurrencies into cash, causing a price decrease in Bitcoin. In previous times, after the emergence of such agendas and the negative comments of most governments about cryptocurrencies, Bitcoin has experienced sudden drops.