The market for cryptocurrencies has experienced a loss of 1.8 percent over the past day (3pm, 7 June 2022).
Following a year of growth and new record highs in 2021, the value of crypto currencies is currently experiencing a volatile period with unpredictable price shifts.
- Bitcoin (BTC) -5.71 percent (£23,590.76)
- Ethereum (ETH) prices decreased by 7.09 percent, or £1,407.14.
- Tether (USDT) surged 0.34 percent, or 0.80 pounds, higher.
- BNB (BNB) -7.76 percent (£224.69)
- Cardano (ADA) -2.72 percent (£0.48)
- XRP (XRP) -2.34 percent (£0.31)
- Binance USD (BUSD) -+0.09 percent (£0.80)
- Solana (SOL) -11.42 percent (£30.87)
- Dogecoin (DOGE) price decreased by 3.77 percent, or 0.0638 pounds.
- Polkadot (DOT) -6.31 percent (£7.27)
- Wrapped Bitcoin (WBTC) decreased by 5.56 percent, or 23,660.61 pounds.
- TRON (TRX) -2.52 percent (£0.0645)
- Avalanche (AVAX) fell 10.62 percent, or 19.16 pounds, yesterday.
- SHIBA INU (SHIB) -4.49 percent (£0.00000850)
The recent drop is being attributed to recent comments made by Bill Gates on Reddit, in which the founder of Microsoft said: “I like to invest in things that have value. The quality of the goods that a company produces is directly proportional to its market worth. The value of cryptocurrency is simply determined by one person’s estimation of how much another person is willing to pay for it.
As a result, investors have lost faith in the cryptocurrency market, which comes at a time when economies all over the world are under pressure due to Russia’s invasion of Ukraine and the post-Covid lockdowns.
And recent falls that were brought on by Tesla’s decision to reverse its position on accepting Bitcoin as payment for its products, as well as China’s decision to crack down on initial coin offerings, restrict exchanges, and warn against speculative trading.
As part of its most recent round of regulatory crackdowns on cryptocurrencies, China gave cryptocurrencies another blow when it ordered all Bitcoin mining operations in the province of Sichuan to cease immediately. The country also instructed banks to stop supporting cryptocurrency transactions.
Now that the country’s central bank, the People’s Bank of China, has announced that any transactions using cryptocurrencies are illegal, a ban on digital coins has effectively been implemented.
The judgment has already made an impression on the cryptocurrency market on a worldwide scale.
Bitcoin wasn’t the only cryptocurrency that was impacted by Tesla’s decision; other cryptocurrencies did as well. (Pic: Shutterstock)
Why has the cryptocurrency market been dropping?
A lack of trust in the market has been prompted by the fact that an uncertain economic future for many countries throughout the world has made its way into the universe of deregulated digital currency.
It comes after China took measures to suppress cryptocurrency markets and after Musk surprised everyone with an announcement in which he seemed to support Tesla accepting Bitcoin as payment for its services.
Tesla bought $1.5 billion worth of Bitcoin shares, which in turn sent the market price of both the cryptocurrency and Tesla surging. However, those days are a distant memory for traders, as the price of both Tesla and Bitcoin has since stabilized.
The business magnate with a net worth of one billion dollars stated, “We are concerned about the rapidly expanding usage of fossil fuel for Bitcoin mining and transactions, particularly coal, which has the worst emissions of any fuel.”
In a statement he made on Twitter, Musk repeated his conviction that cryptocurrencies have a “promising future,” but he also stated that this future “cannot come at enormous cost to the environment.”
Musk has been a supporter of cryptocurrencies for a significant amount of time, and the decision that Tesla made was felt across the market, resulting in a decrease in price for other digital tokens.
How much does one Bitcoin and one Ethereum cost right now?
According to data provided by Coinbase, the value of one Bitcoin was 23,590.76 GBP following the most recent dip in prices on June 7.
The current price of Ethereum is 1,407.14 pounds.
Because cryptocurrencies are not regulated by the government or any of the world’s banks, it is easier and less expensive to move money around with cryptocurrencies than with traditional banking techniques.
Some people felt that the choice made by Tesla, which was publicized by Musk, was a slight on the legitimacy of cryptocurrencies to become a legitimate way of payment in comparison to physical currencies.
Which cryptocurrency values have seen a decrease?
The majority of cryptocurrencies in the top 10 saw their values drop, including Bitcoin, when the early effects were felt. Bitcoin was not the only cryptocurrency to experience this.
Dogecoin, which was initially created as a joke in 2012 and then had its shares surge, has also seen its market price plummet, while the price of Solana has increased by more than 8 percent.
Even if companies like PayPal, Mastercard, and Facebook have shown support for cryptocurrencies, the market was nonetheless shaken up by Musk’s news regarding Tesla. This demonstrates the magnitude of Musk’s power.
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