Bitcoin and Ether set new records by reaching all-time highs in November last year. But it seems that things have been getting worse since then. Most major altcoins, including bitcoin, are selling out because of the potential for interest rates in the US. According to data from CoinMarketCap, the current market cap of bitcoin is $665 billion (approximately Rs.50 lakh 56 thousand crore), down from around $1.3 trillion (about Rs 100 lakh crore) in November 2021. At the same time, the wider crypto market has lost more than $1 trillion (about Rs 70 lakh crore) during the same period. Bitcoin has also hit its lowest level since August after falling more than 10 percent.
Bloomberg quoted wealth management firm Bespoke Investment Group as has told That’s why both bitcoin and the aggregate market have taken a big hit.
Investors are expecting the US Federal Reserve to move forward to tackle inflation. Recently it was reported that the Federal Reserve is also taking steps towards the possible launch of a US digital currency. Since then cryptocurrency prices have fallen further.
Global stock markets have also registered the biggest fall in the past one year this week.
On the other hand, digital assets saw a sharp sell-off a day after Russia’s Central Bank announced proposals to ban all cryptocurrency trading and mining. Russia is one of the largest crypto mining centers in the world. But the proposed rules say that even the country’s banks will not be able to do the work of cryptocurrency investment and exchange.
In its 36-page report, Russia’s central bank has said that the rapidly rising value of cryptocurrencies is due to speculation and only creates bubbles. At the beginning of the announcement of the central bank Bitcoin but had little effect. But on Friday, the popular cryptocurrency fell to its lowest level since August after falling more than 10 per cent.
There has been a demand for a ban on cryptocurrencies in India as well. The central government is preparing to make a law related to cryptocurrencies. The bill related to this was planned to be introduced in the winter session of Parliament, but it has been postponed. Some organizations like Swadeshi Jagran Manch are opposing cryptocurrencies. He says that cryptocurrencies can increase illegal activities. The number of people trading in cryptocurrencies in India is increasing.