The crypto market is down 8.99% in the last 24 hours (1 pm, Thursday 7 January 2022).
Cryptocurrencies are experiencing turbulence after a year of increases and record highs, with no crypto market prediction on price movements.
Following China's announcement of new limitations, investors began selling mining equipment, causing Bitcoin and other top cryptocurrencies to plummet in value.
Bitcoin (BTC) -6.65% (£31,852.48)
Ethereum (ETH) -10.57% (£2,503.40)
Tether (USDT) +0.08% (£0.74)
Binance Coin (BNB) -3.01% (£348.57)
Solana (SOL) -11.33% (£110.53)
Cardano (ADA) -8.08% (£0.90)
XRP (XRP) -7.26% (£0.56)
Terra (LUNA) -8.21% (£57.27)
Polkadot (DOT) -12.63% (£19.32)
Avalanche (AVAX) -10.65% (£69.04)
Dogecoin (DOGE) -7.14% (£0.12)
SHIBA INU (SHIB) -8.30% (£0.00002210)
Polygon (MATIC) -10.56% (£1.59)
It comes after recent market crashes triggered by Tesla's decision to stop accepting Bitcoin as payment for its products and China's crackdown on ICOs, block exchanges, and warnings against speculative trading.
Why is the crypto market down today?
Following China's crackdown on cryptocurrency, investors began selling mining equipment, causing Bitcoin and other top crypto coins to plummet in value. New laws were issued in China's Sichuan province, outlawed mining. The ban on token mining in China set off a chain reaction that caused the crypto market's value down. Meanwhile, Chinese banks have been told to stop supporting cryptocurrency transactions entirely.
Governments worldwide have proposed banning cryptocurrencies with limited exclusions, which may have caused investors to panic. The Indian government's public pronouncements about outlawing private cryptocurrencies in India and teasing the Cryptocurrency and Regulation of Official Digital Currency Bill, 2021, which will be introduced in parliament, have significantly impacted the market. The government has no intentions to consider bitcoin as a currency, according to Finance Minister Nirmala Sitaraman, which is why the crypto market is down.
Main Factors Why Crypto market is down
Another issue that affects the global stock and cryptocurrency markets is the government shutdown. The Indian cryptocurrency market has been downward for the past month, mostly due to the emergence of a new Coronavirus subtype known as Omicron. Meanwhile, another minor reason for the value reduction is investors selling their coins and collecting profits ahead of the year's conclusion and the holiday season.
Due to the developments around the Crypto Bill in India and our crypto market analysis, cryptocurrency prices in Indian exchanges fluctuated for a few hours. Still, the story sustains ONLY for a few hours. Furthermore, the new Coronavirus version known as Omicron is upsetting global markets, with its effects felt across a wide range of markets, including the trading of cryptocurrencies.