Cryptomarket: The Price of Bitcoin Fell By Rs 18 lakhs In 3 Months

The price of bitcoin fell from Rs 47 lakh in April to Rs 22 lakh in May. On July 29, the market price of bitcoin had come down to Rs 21 lakh
Image Credit: Mint
Image Credit: Mint

The rise of digital cryptocurrencies is astonishing. A year ago 6,000 currency was listed on the website coinmarketcap. Today there are 11,145 currency lists. Their total market capitalization has increased from Rs 2.44 lakh crore to Rs 11.86 lakh crore today.

63% of digital currency trading is done by institutions and companies. Despite this, there has been tremendous volatility in the cryptocurrency markets. Due to this, fears of the end of digital currency have arisen.

The price of bitcoin fell from Rs 47 lakh in April to Rs 22 lakh in May. Today it is around Rs 29 lakh. On July 29, the market price of bitcoin had come down to Rs 21 lakh. After the fall, investors are afraid that this fall may become heavy. Because they have a lot at stake in cryptocurrencies.

Decline of Bitcoin

Traders are trading heavily on the decline of bitcoin. When the currency falls, the crypto economy will sit. New coins are awarded to miners who create bitcoins digitally. If the currency drops drastically, they will stop making coins. Investors will also get rid of the rest of the other cryptocurrencies. Philip Gradwell of data firm Chain Analysis says the latest movement shows that the rest of the digital currency will also follow bitcoin.

Bitcoin's fall will cause a lot of damage. In this, most institutional investors, including hedge funds, university endowment funds, mutual funds, and some companies, will suffer losses. Crypto exchanges and crypto companies will suffer losses due to the collapse of digital currency.

Loss of Rs 14 lakh crore possible

Image Credit: Firstpost
Image Credit: Firstpost

A complete collapse of bitcoin can do a lot of damage. Cryptocurrencies may suffer a loss of Rs 14.82 lakh crore from the first shock. The fall will impact other assets across multiple channels. 90% of the money invested in bitcoin is invested in derivatives. Most of these are traded from outside regulated exchanges like FTX, Binance. A few ups and downs will have a big impact. Exchanges will incur huge losses.

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