Bitcoin is a highly volatile cryptocurrency that is experiencing a bear market period now. The investors of bitcoins are biting their nails because of the following percentile change, which is even in double-digits now. Bitcoin was traded at $33,052 at 3:45 PM in New York. It is a 13% downslide in its prices recently, and also, the 200-day moving average was even higher than this price of bitcoin. It is not only the bitcoin that is experiencing a fall in its prices, but other cryptocurrencies like Ethereum and dodge coin are also following. According to Ethereum price, the in prices of other cryptocurrencies also an effect of falling prices of bitcoin.
Before this weekend, bitcoin also took a hike in its prices and reached back again to its price of $38,000, which is an effect of a tweet from the popular Tesla CEO and founder Elon Musk. The hike and downfall in the prices of bitcoin are due to its high degree of volatility and also can be compared to the VIX indicator of US equity market. The indicator states that the volatility of bitcoin is even higher and above 130, which is more than the stock version of the US equity market in the last 30 years. The coin has experienced historical volatility in about 30 days, and it is called at about a hundred, which is more than the S & P 500. The volatility in prices of bitcoins is designed to provide the owner with twice the daily return of crude oil.
Investors who have got their money invested in bitcoin are experiencing a very thrilling experience every week. The bitcoin prices are going negative every day, and the price contraction is even as much as 30%. Bitcoin prices also have fallen as low as $30,016, which is the lowest since last January. If you look at the prices of bitcoin from its origin, it is still considered to be higher-end up by 250% in the past year. The strict and turbulent changes began when the Tesla owner said that he would no longer be accepting bitcoins as a payment for the electric vehicles which are launched by the company recently. Electric vehicles are driven through technology, and we cannot accept something that is also intensive when it comes to energy use. Metaverse
Another most important and drastic blow to bitcoin came recently when China is also trying to control the effect of cryptocurrencies in its market. There is a high degree of financial risk in China when people are investing their money in bitcoins, and to control this, it is going to crack down on cryptocurrency mining. Edward Maya, an expert in market analysis of a cryptocurrency, said that bitcoin is facing two problems at the same time. One is it is decreasing reliance on China which is going to take a long time to become normal, and the other one is ESG. According to the statistics, along with bitcoin, other cryptocurrencies also experienced a downfall like ethereum went down and reached a place lower than $1900, and another coin named Dogecoin experience a fall of more than 16% in its prices.
A warning came from Beijing, which is released by the People’s Bank of China, and the bank has told the financial institutions do not accept cryptocurrencies for payment. As always, China has never liked anything getting out of its control. It always tries to keep everything under control in each country, and it is unable to see that the cryptocurrency market is taking over the whole financial institutions and system. It is one of the most important because of which it is feeling displeasure old and therefore, is being offended by the anonymity of it by bitcoins to its people.
It is not a new thing to experience that governments are trying to take control of everything. In the beginning, the government of every country try to regulate things and then take ownership of the scene. Also, this has happened in the past, that the government of any country is not ready to give up its Monetary Monopolies in its geographical boundaries. Government looks at cryptocurrencies as a threat to its control over the country and financial system, because of which China has been trying to control it from spreading further in its geographical boundaries. When bitcoin and other cryptocurrencies start competing with the Fiat currency in the real sense, it is going to be a crackdown for the regulators and policymakers.