The downtrend that began in the new year for most cryptocurrencies is still continuing. The cryptocurrency market crashed in the last two days. The effect of Black Friday was also visible on Saturday and the prices of all digital currencies including bitcoin, ethereum came to the ground. On Friday, where bitcoin fell 11 percent.
Major reasons for the decline
- Proposal for the ban: The Central Bank of Russia has proposed to ban the mining of cryptocurrencies in the country. The central bank has asked financial institutions to stop doing any transactions through cryptocurrencies.
- Policies of US Fed: US will reduce the available cash to contain inflation and raise interest rates, thereby taking investors out of risk.
- Legislation exercise: Many countries, including the US, UK and India, are engaged in the exercise of making laws for cryptocurrencies, due to which the sell-off has increased.
- Internet problem: Internet shutdown in Kazakhstan also affected prices, where a lot of crypto mining work takes place.
- Corona Effect: The possible damage to the global economy due to the increasing cases of Omicron also caused the prices to fall, the crypto scam in Pakistan is also a reason for the decline.