Why Cryptocurrency Market been crashing? Explainer
Why Cryptocurrency Market been sudden crashing: For many reasons, the cryptocurrency market collapsed last week. For the first time in three months, the prices of Bitcoin dropped below €25,000 after a stunning 22% dropped in a 24-hour stretch on Monday.
Some crypto coins like Ethereum and Dogecoin have lost as many as 25% and 29%. It is as China put fresh restrictions on cryptocurrency trades by restricting the supply of blockchain applications to financial firms and payment firms.
Tesla-owner Elon Musk sent cryptocurrencies in a loop last week when he revealed it will stop accepting Bitcoin for car sales.
Elon Musk tweeted that he had environmental concerns about the cryptocurrency and the energy consumption of the ‘mining’ process.
‘We are concerned that Bitcoin mining and transactions, particularly coal, with its worst fuel emitting, are rapidly increasingly using fossil fuels, ‘ Elon Musk said
He added that cryptocurrency is a ‘good idea on many levels but its promise cannot come at a ‘great cost to the environment.
As of March 31, Tesla did not sell any of its stock filings at BitCoin, which was valued at $2.48 billion (€2.05 billion).
Mr Musk said the company intends to use Bitcoin for transactions ‘as soon as mining transitions to more sustainable energy. After 2019, cryptocurrencies in China have been illegal to cut down on money laundering.
According to Neil Wilson of Markets.com, ‘China has been putting pressure on the crypto space for some time, but this represents an intensification – other countries pursue now as central banks make strides towards their own digital currencies.’