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Monday, December 6, 2021

Big fall in Bitcoin, Ether again, market analysts are counting the reasons for the fall

The falling price of bitcoin is again raising the concerns of investors. The price of bitcoin has come down further in the past day. After reaching this level, the price of this digital coin is now down 20 percent from its all-time high. The price of bitcoin fell to $55,460.96 (approximately Rs.41 lakh) yesterday evening, a drop of 20 per cent from the all-time high of around $69,000 (approximately Rs.51 lakh) achieved in November. The price of bitcoin was running at Rs 41.9 lakh till the time of writing this news.

Bitcoin was trading at $56,377 on CoinMarketCap. This is the first time in recent months that Bitcoin has fallen so much. Even Ether is not able to remain untouched by this decline. Its price is seeing a steady decline but it can be said that it is much less than bitcoin. Ether was also down 20.83 percent at $3,622. The major fall in the two most valuable cryptocurrencies had an impact on other crypto tokens as well. Ripple, Polkadot, USDCoin, Dogecoin and Shiba Inu also saw a significant reduction in prices.

Why is the price of bitcoin falling?

The reasons for the fall in the price of bitcoin cannot be predicted precisely, but market analysts can still make some guesses. According to a report published in Hindustan Times, John Iadeluca, founder of multi-strategy fund Banz Capital, told Forbes that bitcoin is being moved from many very old wallets. This has created rumors and apprehensions for investors. Observers are now trying to figure out what the movement means to bitcoin from the old wallet. Efforts are also being made to find out whether there will be a large sale of bitcoins from these old wallets in the near future as well.

There is also anger among investors about Japan-based bitcoin exchange Mt Gox. It was once known as the world’s largest bitcoin intermediary. It has handover over 70 percent of all its transactions worldwide. The exchange was closed and trading ceased in 2014. Liquidation proceedings to pay back their customers are still not resolved.

A bankruptcy protection scheme that promised billions of dollars in compensation in bitcoin was accepted last month by nearly 99 percent of Mt Gox’s creditors. However, fears are still high that if creditors, who will now receive more than 140,000 units of bitcoin, sell their holdings, this will naturally put downward pressure on the price of bitcoin, driving its price further down.

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Damini Sharma
Experienced Senior Content Writer with a demonstrated history of working in the information technology and services industry. Skilled in SEO Copywriting, Web Content Writing, Storytelling, Blogging, and Social Media. Strong media and communication professional with a mass communication focused in Journalism from Sjmc davv indore.
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