These are the reasons for the decline in cryptocurrency, know everything

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The digital currency market witnessed major turbulence on Wednesday. On May 19, almost all major cryptocurrencies including Bitcoin, Ethereum, DodgeCoin were down by 30 percent. The cryptocurrency market had been witnessing a slow decline for the past few days, but the news of a ban on cryptocurrency transactions from China turned the crypto market into Black Friday on Wednesday.

On Tuesday, China banned its financial institutions and payment companies from offering cryptocurrency-related transactions or any other type of service. This simply means that banks and online payment channels can no longer offer any cryptocurrency related services to customers. Now, as soon as the news came on the market, panic selling started and within a few hours, many cryptocurrencies including Bitcoin, Ethereum, Dogecoin, Litecoin, Shiba Inu fell headlong.

Let us know that China imposed a similar ban four years before today i.e. in 2017, but now the new rules implemented in this new ban have made the services even more limited. With this, the real value of virtual currency is now lighter than before.

According to the crypto trade platform Binance, on Wednesday at 7 pm (IST) bitcoin (BTC) was trading 21 percent down from its 34 hours ago price of $ 34,693.1 (about Rs 24,97,903). At the same time, another popular crypto coin Ethereum (ETH) was trading down 25 percent at $ 2,453.15 (about Rs. 1,76,626).

However, China cannot be blamed alone, as the cryptocurrency market had been witnessing a decline for the past several days. Last week Elon Musk, the owner of electric car maker Tesla and the world’s second richest man, announced that Tesla now accepted bitcoin as a payment mode for its car sales, given the environmental damage. Will not do. Whereas, about a week before this, Musk had approved Bitcoin to be used as a payment at Tesla. Somewhere, this is also one of the reasons why cryptocurrency investors are in a state of confusion.

Elon Musk has been interested in crypto for a long time. Initially he used to praise Bitcoin a lot, but since the arrival of Meme Currency Dogecoin, he was constantly tweeting about this new coin. After talking about taking bitcoin, its impact on the environment, hitting a U-turn and talking with DodgeCoin’s Creator to make the system better than before. Certainly, this may be one of the many reasons of earthquake in the market.

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