Top 4 Reasons For Bitcoin Crash Rapidly

In recent days, the price of bitcoin has fallen (Bitcoin Crash) below its 18-month record level. In recent days, the price of bitcoin has fallen below its 18-month record level.

Currently the price of bitcoin cryptocurrency is trading around $21000. Simultaneously all other major cryptocurrencies such as Binance Ethereum have also registered a decline of 25 to 30% in the last 7 days.

Since the year 2022, there is a continuous decline in the price of bitcoin and due to this the price of bitcoin is crashing. The entire crypto market is devastated at this time.

There is a panic situation in the mind of all the investors that we should hold bitcoin or sell it because the market is continuously going down.

There are 4 big reasons behind why the market is falling (Bitcoin Crash), which we will explain to you one by one today.

Top 4 Reasons For Bitcoin Crash

 

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1. Federal Reserve Tax Big Reason For Bitcoin Crash

Within the United States, the Federal Reserve has increased the tax on bitcoin, this tax has been increased to more than 20 percent. Increased tax creating panic among investors for upcoming inflation.

In the United States, most people live in debt, they have many types of debt. In such a situation, even if more than 20% tax will be imposed on the income from cryptocurrency. How will it control inflation in the coming times? great thing to think about.

Keeping all these things in mind, United States investors have started withdrawing their money from bitcoin, due to which the price of bitcoin is crashing and it is recording a continuous decline.

2. Binance Bitcoin Withdrawal Suspension

Binance is considered to be the world’s largest cryptocurrency exchange. On which platform trading as well as stacking audio and many other types of projects are also run.

Binance Exchange also supports other cryptocurrency exchanges such as WazirX and TokoCrypto as well as their own Finance.us exchange.

Based on an estimate you can say that almost 70% of the traders in the world trade on finance in some form or the other.

Bitcoin And Peer To Peer Technology: A short Description.

In such a situation, when the news of Binance closing bitcoin withdrawal comes, then a fear arises among the people. However, when Binance suspended the withdrawal of bitcoin, they gave a technical reason behind it. But it is a big reason behind Bitcoin crash.

As of now there is no information about whether that technical reason has been fixed or not and the price of bitcoin is crashing continuously. A similar situation will be seen until the bitcoin withdrawal is restored again. And the price will continue to fall as people are withdrawing their money by trading in other cryptocurrencies.

3. Celcius Bitcoin Withdrawal Suspension

The second technical problem has come from the Celsius exchange, which is also a very large cryptocurrency exchange and their main job is to lend crypto so that people can use it in margin trading and earn more money.

After Binance Exchange has also suspended bitcoin withdrawal in Celsius and they have given the reason behind the market situation. But we know this is the major reason behind bitcoin crash.

On hearing the name of the market situation, there is a fear in the mind of the traders and investors that they do not know where the market will stop now. And how much more loss we will have to bear that is why people get scared and try to get their money out. Which will make the price goes down.

4. Coinbase Reduced 18% Working Staff

Just a few days ago there was news that some malice exchange has canceled the new recruitments but after a week only a new news comes. According to this new news Queen’s Base exchange has fired 18% of the workers working in it.

The reason is that the market has completely crashed, the market cap of cryptocurrency has reached below 1 trillion almost. Due to lack of business, more staff cannot be hired and that is why about 18% of the staff has been reduced.

Crypto Market crash or Bitcoin crash is the main reason behind reducing working staff by 18%.

Final Points

Bitcoin is crashing and has been down almost 30% from the currency market. The reason behind this is the text extended by the US Federal Reserve and the bitcoin withdrawal suspended by Binance and Celsius exchange.

It plays a huge role in the Indian market because even here the tax on cryptocurrency has been imposed by the government. And this tax is 30 percent on income and one percent TDS which will be deducted on every single transaction.

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