Millions of investors drained billions of dollars in Bitcoin. Why?

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Bitcoin is falling day by day, and so are the other cryptocurrencies. Why?

For crypto traders around the world, the week has been very tough. Almost all famous cryptocurrencies, including Bitcoin, have fallen dramatically. Although all known cryptocurrencies fell over the weekend, they are expected to rebound in the long term. Bitcoin fluctuated wildly throughout the week, dropping below 39 thousand US Dollars on Wednesday.

The main reasons that could be behind this fall in the cryptocurrencies and bit on could be the following: 

China has banned payment companies and various financial institutions from providing any service related to cryptocurrency transactions and has warned investors not to engage in speculative cryptocurrency transactions. This is China’s most recent attempt to contain the emerging digital commercial market. According to Reuters, three industry agencies stated in a joint statement that under the ban, such institutions, including banks and online payment channels, cannot provide customers with any services involving cryptocurrencies, such as registration, trading, clearing, and settlement.

Another reason behind the sharp drop in cryptocurrencies is Elon Musk, the CEO of Tesla. He, who has always been a sincere supporter of cryptocurrency, recently implied that the company might be considering giving up its Bitcoin holdings. Elon Musk has received criticism from many cryptocurrency enthusiasts, who gave specific opinions and led him to reassess his views on Bitcoin due to the carbon emissions from a tween on Twitter. He, however, also went on to share a chart of the Cambridge Bitcoin Electricity Consumption Index (CBECI) to support his view. His changing opinions and decisions regarding Bitcoin have been altering and fluctuating the price of cryptocurrencies for the past month.

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