Cryptocurrency is a decentralised medium of investment and making payments; they are not under the influence of the government. Implying, the government cannot control the rules and regulations and the prices of cryptocurrencies like bitcoin at all. It makes them free of manipulation and fluctuations in the market, which leads to price volatility to a large extent. The prices of bitcoins have recently been calling drastically after increasing $69,000 in November. Have you ever wondered what the reasons are? Let us tell you that there could not be one reason for the downfall in bitcoin prices, but there are many of them. If you are sure that you can imply and know about the fundamental reasons for the same, it will be easier for you to bring the future of cryptocurrencies, and you can make it a valuable investment.
Being the most popular cryptocurrency globally, Bitcoin experiences maturation is more than any other crypto in the world. However, despite being the best cryptocurrency, it experiences a lower amount of fluctuations and increases in prices than the other crypto available worldwide. For example, ETH, the second most popular cryptocurrency globally, has experienced a higher increase in its prices than bitcoin. It is all because people are shifting to safer investment options rather than placing their faith in bitcoins, which is the most volatile cryptocurrency globally. It is undoubtedly a prominent reason why cryptocurrency investors are now scared of making investments. For more info visit the bitcoin revolution platform
The omicron variant
There could be multiple reasons behind the decreasing value of bitcoin in the market, but the most prominent one among them is the omicron variant. Yes, recently, there was the discovery in Brazil that a new variant of coronavirus is emerging. Now, the cases are ever-increasing, and it has spread worldwide. People travelling from Brazil to different corners of the world had taken along the virus, and therefore, it is taking over the majority of powers in this world. The fear of a decrease in global activities and shutting down the global economy has led investors to withdraw their investment from bitcoin. It is leading to massive cash flow from the cryptocurrency market, and therefore, the prices of bitcoin are decreasing.
The Federal Reserve meeting
The December meeting of the Federal Reserve of the United States of America has also led to controversy in the crypto market. The main reason behind the meeting was not to shut down cryptocurrency trading but to impose regulations that could control inflation. People are very optimistic about cryptocurrencies, and therefore, they are withdrawing their investment from the Federal reserve stock market. It leads to inflation in the United States of America, which is unacceptable for the government. Therefore, the government will bring about a rule where they will question the number of transactions the brokers make in cryptocurrencies like bitcoin. This fear leads people to withdraw their investment from bitcoin, and hence, the prices have declined ever since.
Indian government‘s decision
Every major country for cryptocurrency trading operation in India and recently, the government is not very happy with the increase in the use of bitcoins. The youth of India are very much optimistic towards bitcoin, and therefore, they are trading in it in large volumes. However, this is not acceptable for the government because it threatens the global economy. Also, the economy of India is developing and therefore, if people do not invest in government ventures, he is not going to get funding. Therefore, the government was about to bring a new cryptocurrency rules and regulations Bill in the December session, which led to the decrease in the prices of bitcoins to a large extent.
China’s mining ban
The ban on mining operations from China has a significant impact on the prices of bitcoins. Recently, China was the core of cryptocurrency mining operations and bitcoin trading. However, imposing a ban on the cryptocurrency economy wholly shattered the geographical boundaries of China. Therefore, people are less optimistic about cryptocurrencies there. Therefore, a large share of the amount was out from the bitcoins. As a result, it led to a decrease in the prices of bitcoins. The main reason behind the ban is China’s decision to bring about its cryptocurrency in the market.