Ever wondered why crypto currencies are crashing up till this date? Despite the drastic fall lately lots of people still invest in crypto currencies with the intention to invest now it’s cheaper and pray it rises massively soon. But since then lots of bad news has been coming up.
Bitcoin had reached around $41,000 on Tuesday 15th June 2021, but started to falling steadily throughout the week, before tumbling in the early hours of Monday.
Why is crypto currency crashing
It’s now a thing of concern to so many why crypto currency is crashing and here’s why:
Back in May, Chinese officials affirmed an old ban that forbids financial firms from actively aiding in the mining and selling of crypto currencies. It caused a big drop, but crypto enthusiasts shrugged that the ban is nothing new, that it was enshrined in 2013 and then sparsely enforced.
However, moves made by China on Monday 21st June 2021 indicated the law would be enforced much more seriously. The order was to “crack down on crypto trading”. They also added that “crypto currency is not a real currency and Should not and cannot be used as a currency in the market”
Currently, the regions of Sichuan and inner Mongolia have both ordered the shut down of all mining operations with miners forced to pack up and go elsewhere. It’s also believed that the existence of crypto currencies increase the risk of illegal cross border transfers of assets and illegal activities such as money laundering.
What could happen next….
Crypto currencies are notoriously volatile, making it very difficult to tell what next might happen. This is why they are risky investments. Investors are hereby advised to be careful at the rate at which they invest so as not to loose all at the current crypto crash.
The good news this week for short term traders is that the trading volumes have increased across exchanges. It allows trader to place short term swing trades.