On Friday, Cryptocurrency saw a collapse for the second time in less than a month, initiated by the Russian Central Bank proposal to prohibit the use and mining of cryptocurrencies.
Bitcoin has lost more than 12% Friday and dropped below $36,000 to its lowest level since July. As per the historical data, Bitcoin has lost over 45% of its value since its peak in November.
Other cryptocurrencies like Altcoin, Ethereum, Cardano, Solana, Meme coin have also witnessed the same, if not more.
Unlike other dips, when Indian buyers lean to buy, there was circumspection amongst crypto investors and traders, and the intensity of buying is comparatively lower than the previous dips.
What do experts say about this behavior?
WazirX founder Nischal Shetty said that the buying intensity is lower than the last few months. Moreover, the cause has less to do with India and more to do with global crypto sentiment. Indian investors are playing ‘wait and watch.’
As the volatility increases, investors tend to gauge in which direction the market is moving. Once they find it, the buying starts taking place.
What are the causes?
As stated above, the Russian Central Bank proposal affected the market, given that Russia is one of the biggest hubs for crypto-mining in the world.
In addition, the bank expressed that digital currencies could pose a menace to the financial stability of the country.
Many countries, including India, are trying to introduce legal legislation about crypto. Though, there has not been any comprehensive regulation by any regulator in the world.
Other important aspects
In addition to the information mentioned above, the Biden government is preparing to discharge an initial government-wide strategy for digital assets as soon as next month and task federal agencies with assessing the risks and opportunities that they pose, as per the views of people.
How is the situation among traders?
Over the past 48 hours, more than 3,00,000 traders had their positions closed, with liquidations totaling roughly $900 million, as per the data from Coinglass, a cryptocurrency future trading, and information platform.