After seeing record decline, the cryptocurrency market is again on the path of strength. On Monday, the cryptobazaar saw the ups and downs after a week of ups and downs. This first increase has brought relief news for this emerging market after China’s ban on cryptocurrency transactions.
The price of bitcoin (price in India) rose to $ 37,391 (about 27 lakh rupees). Earlier it was falling at the rate of 7.5 percent per day. But now this decline has come down to 5 percent per day.
Ether, the second largest cryptocurrency, jumped ten percent and reached $ 2,321 (about Rs 1.7 lakh). It had slipped 86. percent on Sunday, hitting its lowest price in two months at $ 1,730 (about Rs 1.2 lakh).
The factors of recession are being considered as minors who solve complex math equations through powerful computer machines. Due to this, some Chinese operations were affected in view of the increasing investigation by the authorities.
China’s minors contribute 70 percent to this supply of cryptocurrencies. That is why the cry for a cryptocurrency ban came up in Beijing.
Huobi, the major cryptocurrency exchange, also shut down crypto mining and some of its trading services in China on Monday. He instead called for attention to overseas trade. Market players said this would put pressure on prices as miners sell bitcoins on the balance sheet.
James Quinn, partner manager at Q9 Capital, said, “If they are withdrawing the stakes they will have to reduce their balance sheets for a short period.”
The crypto market players said that there would be apprehension over China’s decision to ban.
Joseph Edwards, head of crypto brokerage research at Enigma Securities, said, “We can expect some stability until next week but no one can say concretely what is going to happen next. The crypto market itself It is going through a very difficult phase and the situation is very delicate. ”
Bitcoin saw some stability on Saturday when Tesla owner Elon Musk retweeted a tweet about cryptocurrency. In this tweet, he talked about supporting crypto between fiat money and crypto.
Last week, bitcoin prices had dropped by 25 percent. The reason for this was the strictness imposed by China regarding crypto. Although bitcoin prices have seen an increase, it is still trading 45 percent below its peak value of $ 64,895 (about Rs 47 lakh) in the previous month.
In February, Tesla revealed its investment of $ 1.5 billion (about Rs 10,990 crore) in bitcoin. After that, bitcoin was accepted as a payment for Tesla, which led to a surge in prices. But recently, Tesla overturned the decision, rejecting it as payment and its prices started coming down again.
Talking about Ethereum, it came at half the price in a period of just 12 days. Its peak value was $ 4,380 (about Rs 3.2 lakh) before the decline began. Simultaneously, small cryptocurrencies like Dogecoin were also seen to.