Bitcoin Price Crash Explained: Fall Of Cryptocurrencies?

In just less than 24 hours, the price of the bitcoin has come down drastically from $47,000 to just under $44,000. The price of bitcoin has been come down over the last few weeks. However, this time around, the price has been slashed around 10 percent in just a couple of hours.

It is now said that one of the reasons behind the sudden price crash of bitcoin has to do with the US Federal Reserve's meeting, which has hit the value of the bitcoin. According to reports, several investors on both Wall Street and crypto markets have sold their portfolios to gain liquid funds.

The latest US Federal Reserve meeting's report consists of points related to increased expectations to raise the interest rate to fight inflation. Hence, the panic selling of cryptocurrency. Once the dust settles, bitcoin and other cryptocurrencies should see a spike in their value and bitcoin might even break its all-time high price record.

Industry analysts now predict that the price of bitcoin will rise once this dust settles. Do note that, bitcoin reached its all-time high price of $70,000 in November 2021. And now, the price has come down to almost half of that. Hence, this is said to be short-time volatility and should not affect those, who are into long-term gains.

Most serious crypto investors are now using this dip to top-up their crypto or specifically the bitcoin portfolio, which is said to be the future of financing and will also be the top cryptocurrency. However, we do not recommend buying or trading of crypto-currency in any way and one should do that only after clearly understanding the pros and cons of the cryptocurrency.

Crypto Scenes In India

The govt of India has also confirmed that new laws and mandates will be announced, which will be specific to the cryptocurrency. In fact, the govt is also planning to ban private cryptocurrencies from the country. As of now, it is still unclear how govt will implement these guidelines, as cryptocurrency is based on a decentralized network.

The govt could ban crypto exchanges that are based out of India. However, it won't be able to ban any of the cryptocurrencies, as they don't work as a conventional banking system.