Significant decline in the value of Bitcoin and its economic impact

Significant decline in the value of Bitcoin

and its economic impact

On June 13, the value of the decentralized digital currency Bitcoin fell from $ 64,000 in 2021 to less than the 18-month low of $ 25,000. As a result, some investors have been exposed to fairly volatile market conditions. Bitcoin was worth about $ 23,000, while Ethereum was below $ 1,200. "The volatility of the cryptocurrency market is common. I think it's only high today. This doesn't seem to be a bearish market. It may take months or more to see what the current crash means in the long run, "Sathvik Vishwanath, co-founder of crypto exchange Unocoin, told FE Digital Currency. ..

Industry experts believe that inflation is a problem for crypto investors. Rising interest rates in crypto-focused countries have led to lower liquidity in all markets, according to Rajagopal Menon, vice president of crypto exchange WazirX.

In addition, as shown in market reports, Bitcoin, which was considered  a credible investment a few years ago, is beginning to lose value. As a result, the credibility of other cryptocurrencies like Ether has been questioned. "It's undeniable that the technologies and signs that support crypto coins haven't been questioned at all. Cryptocurrencies have always been volatile," said Ramkumar Subramaniam, co-founder and CEO of GuardianLink, a decentralized platform, said.

Interestingly, Bitcoin is projected to drop to $ 14,000 this year. The Indian market has not been affected and trading volumes on the exchange have recently declined due to new tax laws and falling crypto prices, said Amanjot Malhotra, the country head of cryptocurrency exchange India. "Due to the current scenario, crypto companies have stopped hiring new employees and are now focusing on cost optimization," he added.