This Wednesday, due to the recent turbulence in the cryptocurrency market showing little signs of abating, Bitcoin recovered above US$40,000 (approximately 2.9 million rupees) for the first time this week.
Bitcoin (price in India) rose by as much as 6.5% to US$40,904 (approximately 297 trillion rupees). Smaller coins tend to rise and fall with the largest cryptocurrencies, with Ethereum (the Indian price) climbing by more than 7.5% to more than US$2,906 (approximately 210,000 rupees).
Despite this, Bitcoin is still down 30% this month, down more than 37% from the historical high of nearly $65,000 touched in April. However, this year it has grown by more than 40%.
The drivers of Bitcoin’s recent plunge include concerns that China will hit emerging industries and concerns about the environmental impact of Bitcoin production, an energy-intensive process called mining.
Last week, Bitcoin fell by $30,066 (approximately 2.18 million rupees) in highly volatile trading, its lowest point since January.
A few days after Beijing vowed to severely crack down on Bitcoin mining and trading, China’s northern Inner Mongolia region escalated an anti-cryptocurrency mining campaign on Tuesday, issuing draft rules aimed at eradicating the business.
HSBC CEO Noel Quinn recently stated that the bank has no plans to open a cryptocurrency trading desk or provide digital coins to customers as investments because they are too volatile and lack transparency.
When Europe’s largest bank’s stance on cryptocurrency came out, the world’s largest and most well-known Bitcoin (Bitcoin) fell nearly 50% from this year’s high. The reason was that China severely cracked down on Bitcoin mining, and the famous Proponent Elon Musk lowered his support for Bitcoin.
It is in stark contrast with competitors such as Goldman Sachs. Reuters reported in March that Goldman Sachs had restarted its cryptocurrency trading department, and UBS was also indicated by other media that it was exploring ways to use currency as an investment product. .
Quinn said: “Given that we don’t want Bitcoin to fluctuate as an asset class, customers will certainly exist if they want it, but we will not promote it as an asset class in the wealth management business.”
He said: “For similar reasons, we will not rush to buy stablecoins.” He refers to digital currencies such as Tether, which try to avoid the usual cryptocurrency-related things by pegging their value to assets such as the U.S. dollar. Volatility.
Thomson Reuters 2021 ©