Following a rough day leading to a total crash, Bitcoin failed to grow in value even marginally on Friday, January 7. With a further value dip of 2.45 percent, the world's most valued cryptocurrency is trading at $45,488 (roughly Rs. 33 lakh) on Indian exchange CoinSwitch Kuber. On January 6, Bitcoin trading closed in India at around $46,631 (roughly Rs. 34.6 lakh). On international exchanges as well, Bitcoin is struggling to cope. On Binance and Coinbase, each Bitcoin token is trading at around $41,741 (roughly Rs. 31,000) making it one of Bitcoin's lowest values in recent times.
Ether tumbled by a substantial 7.40 percent dragging its trade value to around $3,516 (roughly Rs. 2.6 lakh) as per Gadgets 360's crypto price tracker.
The overall crypto chart emerged red after majority altcoins followed Bitcoin and Ether on the loss wagon.
Tether, Ripple, Polkadot, Polygon, and Chainlink registered losses among other cryptocurrencies.
The low force of the crypto market is also not helping Dogecoin and Shiba Inu, neither of which have registered any price hikes for nearly a month now.
USD Coin, Cardano, and Zcash emerged on the short list of gainers on the crypto charts.
Industry experts are giving a shout out to potential investors, who could use this overall dip to their advantage and buy tokens.
“This situation may be due to the speculations around regulations, inflation and fear of the new COVID variant. But this might also be a good opportunity for enthusiastic investors to actively take advantage,” Edul Patel, CEO and Co-founder of crypto investment firm Mudrex told Gadgets 360.
Two major events in the cryptocurrency space have rocked Bitcoin's value down to a three-month low, which in turn impacted the overall market movement.
It occurred after the US Federal Reserve indicated it could move up its timetable for raising interest rates to mid-March. The US Federal Reserve is essentially going to stop printing money and make it more expensive to borrow in order to steady the economy and keep rising inflation in check.
On the other hand, Kazakhstan, the country which accounts for a large 18 percent of the Bitcoin network's hash activity, witnessed a nationwide Internet shutdown, causing the coin's hashrate to drop by 13.4 percent — reflecting in a sharp fall in value.
In order to distribute power to the residents, the authorities of Iran have also imposed a three-month ban on the electricity consuming Bitcoin mining centres. This decision also seems to have impacted Bitcoin's hashrate.
“Hashrate” refers to the total combined computational power used to mine and process transactions on a Proof-of-Work blockchain, such as Bitcoin and Ethereum.
As of now, it remains unclear by when crypto market would recover.
Interested in cryptocurrency? We discuss all things crypto with WazirX CEO Nischal Shetty and WeekendInvesting founder Alok Jain on Orbital, the Gadgets 360 podcast. Orbital is available on Apple Podcasts, Google Podcasts, Spotify, Amazon Music and wherever you get your podcasts.
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