A bitcoin price drop! Why?

Among all asset classes, Bitcoin is the only asset with the most volatile trading history. Every bitcoin sets new all-time highs and tops the headlines. It’s quite shocking to see how news about bitcoin can negatively impact the price, causing the price of bitcoin to fall.

Any current events or news are the main factors affecting the price of bitcoin. Many times throughout Bitcoin’s history, there have been headlines about Bitcoin’s adoption by multinationals and stock market hacks hitting their investors hard. Bitcoin News has the power to either make or break your reputation in a matter of seconds.

To learn more about the bitcoin market, you need to read why bitcoin prices rise and fall.

In the early days of bitcoin, the price fell when there was news of the hack of the most popular crypto exchange called Mt. Gox. It has seen multiple crashes and rallies since its inception and continues to shock or amaze people by making headlines every time. The price change reflects both dissatisfaction and excitement at the promise made by its creator, Satoshi Nakamoto.

Bitcoin was designed as a medium of exchange that eliminates the middlemen, but it replaces fiat currencies and replaces other assets. People invest heavily in Bitcoin, considering it “digital gold” as it offers higher returns than any other asset.

That being said, there is a lot more going on in the market and it is important to keep up to date with current events and news to know about Bitcoin before investing in it. Here in this article, let us know the latest bitcoin headlines and whether it’s rocking or falling?

  • Tesla and Microstrategy move parts of their corporate finances to Bitcoin. Bitcoin and the underlying technology has captured the attention of investors by demonstrating its financial potential. With each passing day, bitcoin is maturing, and currently, investors’ attention has shifted to the business needs and requirements surrounding bitcoin. The growing e-commerce ecosystem and expanded use of cryptocurrencies like bitcoin have caught the attention of investors.
  • On March 13, the price of Bitcoin hit an all-time high for the first time; Bitcoin traded at $59,755. Bitcoin has traded this high for the first time, making it the most popular and largest cryptocurrency in the world.
  • As with gold, bitcoin’s supply is scarce and its demand is a major factor that drives its price as with all other commodities. But Bitcoin is full of twists and turns. Bitcoin’s supply is capped at 21 million bitcoins, and its supply growth is halved every four years. It is specifically designed to be constrained, meaning fluctuations in demand will cause the price to fluctuate.
  • Tesla has suspended accepting bitcoin for vehicle purchases. After being bullish on bitcoin for around two months, Tesla paused acceptance of the popular cryptocurrency as a medium of exchange last Thursday to buy electric vehicles.

The government plans to set up a new body to study crypto regulations

Government stance on cryptocurrency in India has been quite unstable. Crypto used to be completely banned in the country, but now the government is trying to educate itself about the potential applications of blockchain technology and it may set up a committee to study blockchain technology and how it can be used to improve the technology .

Planning is in the early stages, so nothing is confirmed yet. With the growing popularity of cryptocurrency in India, it has become important to regulate it as it is impossible to stop people from trading cryptocurrencies like bitcoins.

Finance Minister Nirmala Sitharaman has also previously stated that the government needs to focus on regulating how cryptocurrencies operate in the market as a total ban is not the solution. The cryptocurrency regulation bill was due to be tabled in Parliament’s 2021 budget session in March, but was postponed for unknown reasons.

But now it is expected that the bill will be tabled at the next session of Parliament. According to some reports, the law is currently intended to criminalize the use of cryptocurrency and trading in India. If the law is passed, holding cryptocurrency will also become a criminal offense and the person may face criminal charges.

Bitcoin price drop article and permission to publish here provided by Jean Nichols. Originally written for Supply Chain Game Changer and published on June 23, 2021.

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