Major cryptocurrencies like Bitcoin and Ethereum have been witnessing constant falls in recent days.
Bitcoin rates to have reportedly dropped to the lowest since the beginning of August 2021
Bitcoin prices have fallen below $45,000. This drastic change of 8 percent can be attributed to Chinese developer Evergrande's debt of $300 billion, according to analysts. Although there's no direct link between the property developer and cryptocurrency, many analysts are suggesting that the troubles in China's property market could trigger a crypto crash as it would drive risk-aversion in investors. However, others see this as an opportunity—the President of El Salvador tweeted to his followers that the country had purchased 150 more Bitcoin, and added that “buy the dip” is presidential advice.
“This [El Salvador's purchase] shows that although the market will undoubtedly fluctuate, crypto will always be a sought-after asset. When the market falls, the only way is up,” said the CoinDCX research team, reacting to the markets today.
Nevertheless, as worried investors of Chinese property stocks expressed concerns, they moved and traded their assets in other forms – resulting in market instability. On Tuesday, world's largest valued crypto Bitcoin crashed by 6.39 percent and started trading at Rs. 34,03,511 ($46,219.68). Bitcoin had closed at Rs. 36,35,907 ($49,375.62) earlier. In recent days, the exchange rates of Bitcoin appear to have dropped to the lowest since the beginning of August 2021.
In addition, Ethereum that was trading at Rs. 2,56,011 ($3,476.63) on September 20, also slumped by 6.20 percent. The current value of Ethereum is presently Rs. 2,39,564 ($3,253.28).
As for meme-based Dogecoin, that had witnessed a slight rise in value last week, a marginal low has been recorded. The cryptocurrency has fallen in rate by 6.57 percent, bringing its exchange rate to Rs. 16.64 ($0.23)
On the other hand, stablecoins Tether and USD Coin registered marginal growths of over one percent each.
As per digital asset manager CoinShare, the inflow in cryptocurrencies amounted to $41.6 million (over Rs. 306 crores approx.) for the week ended on September 17.
While Bitcoin transactions made up for capital worth $15.3 million, Ethereum products garnered $6.6 million in trading last week.
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