Cryptocurrencies lose all November profits. Bitcoin tries to keep above $ 60,000

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Cryptocurrency traders have noticed a significant drop in Bitcoin for a significant period to less than $60,000 with the major cryptocurrencies dropping significantly. There are also significant losses during today’s trading. All cryptocurrencies lost their gains during the month of November, and financial experts believe that this decline has several reasons. We will mention the main reason in this article.

The world’s largest cryptocurrency has temporarily dropped to $ 58,702.

However, Bitcoin managed to reduce its losses and trading over $ 60,000 again a few hours later.

Ethereum, the second largest cryptocurrency, also fell 7%, trading near the $ 4,230 mark.

The reasons for the decline in cryptocurrencies were not clear, but China’s National Development and Reform Commission said during a press conference on Tuesday November 16 that it would continueIt will work to significantly and gradually eliminate currency mining within the country in the coming period, the beginning of the new year to phase out cryptocurrency mining in the country.

Committee spokeswoman Meng Wei said mining causes significant energy consumption and carbon emissions and has no active influence on industry development or scientific advancement.

The National Defense Organization (NDRC) added that it will follow up on private and state-owned companies participating in the mining process

It also said it is considering imposing penalty electricity prices on those who engage in crypto mining activities but pay a price on household electricity.

China has taken strict measures against everyone who has mined digital currencies, whether in Bitcoin or Ethereum, and this has caused the emigration of many who work in digital currency mining outside the country. A report indicated that Beijing is concerned about the amount of energy used in digital mining. is an energy-consuming process that creates and new coins records all existing crypto token transactions.

Chinese authorities have been focusing on cracking down on Bitcoin mining since the beginning of this year, and China is aiming to be carbon neutral by 2060.

Will the decline in cryptocurrency be corrected

The retreat in cryptocurrency prices also comes with the fact that many of them hit all-time highs in November.

Bitcoin hit a record high of $ 68,990 on November 10, followed by Ethereum on November 11.

“I think we’re seeing a healthy pullback after 7 weeks of climbing from 40,000 to 69,000, which is normal on an uptrend,” Vijay Ayyar, head of Asia Pacific at Luno Exchange, told CNBC.

After days, Bitcoin drops more than 11% to 47.4, so what’s the reason?

Bitcoin plunged nearly 8% on Friday November 26th after a new, potentially vaccine-resistant mutant strain of the coronavirus was discovered, prompting investors to ditch riskier assets for assets they believe are safer, such as bonds, the yen and the dollar.

Big drop in Bitcoin, the largest and oldest cryptocurrency, by up to 7.8%

The scientists said the mutant strain, discovered in South Africa, Botswana, and Hong Kong, has an unusual mix of mutations and may be able to bypass immune responses or be more prone to infection.

Ethereum, the second largest cryptocurrency in terms of value in the currency market, has also fallen to its lowest level in a week.

And in its most recent trade of $ 4,070, it was almost 18 percent less than its November 10th high.

Is it time for central bank digital currencies

The Bank of England said this week that the Bank of England digital currency is unlikely to arrive until at least 2025.

Until then, this will only happen if it proves to be “operationally and technically robust”.

Growing interest in digital currencies has rekindled central banks’ digital currency ambitions.

So far, however, most of the CBDC projects have been slow to develop.

Garrick Hellman, research director at cryptocurrency firm Blockchain.com, says central bank currencies run the risk of “outperforming and underperforming.”

The interest in cryptocurrencies, specifically Bitcoin, has led banks to develop their own digital currencies

Sweden, which earlier adopted CBDC, hopes to have a digital version of the crown by 2026.

In China, the central bank will go a long way to owning the digital yuan in the coming period in several provinces

Experts believe that China intends to launch the first fully encrypted digital currency for its banks

But the digital yuan of the People’s Bank of China faces many problems and because of these problems, investors do not prefer to step in to buy this currency

People who criticize this topic say that digital currencies will enhance their presence in the commercial market in most countries in the world

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