The fall in the price of Bitcoin and crypto assets on today’s trading (23/4/2021) made the cryptocurrency market capitalization lost US $ 260 billion.
During the day, Bitcoin price fell nearly 10% in the last 24 hours to a level of US $ 49,281.40, according to CoinDesk data. Ethereum fell to US $ 2,202.05, (down more than 11%). XRP, the fifth largest cryptocurrency, has fallen more than 22% in price, according to price tracking site CoinMarketCap.
It is unclear what triggered the sell-off even though cryptocurrencies are known for their wild price fluctuations.
“Overall cryptocurrency prices have gone up quite high, and will probably be corrected before the next step,” Vijay Ayyar, head of business development at crypto exchange Luno, was quoted as saying by CNBC International, Friday (23/4/2021).
On Thursday, the US stock index fell after reports that President Joe Biden was considering a capital gains tax hike. “There is also a broader stock market downturn, which may affect all risk assets,” added Ayyar.
This Year Bitcoin Cs Increases Significantly
This year alone, the price of bitcoin has increased 71% and ethereum has gained 200%. The driving force is an increase in bitcoin purchases by institutional investors. Even Tesla and Square have bought up billions of dollars worth of bitcoins.
Banks are also trying to allow their customers to get involved in the bitcoin market. In March, Morgan Stanley said it was rolling out access to three funds that allow bitcoin holdings, CNBC reported.
However, concerns about bitcoin tightening rules continue to haunt the market. Jesse Powell, CEO of cryptocurrency exchange called Kraken, warned the government could curb the use of bitcoin and other cryptocurrencies.
India plans to introduce laws to prohibit trading or even possession of cryptocurrencies, according to a Reuters report.
Picture source: Heavy Penalties Stalking Crypto Owner & Trader
