New Delhi: Crash that started in May is still continuing and investors are panicking over the situation. Largest cryptocurrency Bitcoin touched it’s all time low during the crash. Other top crypto assets also registered a fall between 2-9%, with only USD Coin trading higher by a marginal percentage.
Coins related to the Ethereum dropped nearly 57 per cent to $1,850, its lowest level since late January.
Recently the Reserve Bank of India that bankers cannot cite the Supreme Court order of 2018 to warn users for trading in cryptocurrency, as RBI has not issued any guidance since 2018.
As per a Zebpay report, this week bitcoin i.e. the largest digital token by m-cap witnessed extreme bouts of volatility with prices falling to $31,000 ( i.e. close to May levels of $30,000) from $39,000 and currently trading over $35,000.
Here are various reasons cited for the crash in cryptocurrency market:
Crypto influencers: Whales like Elon Musk influence the market most. Even one tweet can make wonders either in their favour or against them has the power to move crypto prices irrationally.
Staffing issues: High volatility seen in crypto prices over the weekend is attributed to low staffing.