Why is Crypto market down - Is the Bitcoin Bull Run Over ?

It has been a tough couple of weeks for the crypto investors as major  Cryptocurrencies still plunge in price taking the market cap all the way all the way down to $1.28 trillion dollars. Few months back few Crypto's crossed their all time high price mark, but now they're facing an enormous set back.

You may be be thinking what's the explanation behind this ? well during this blog I will be able to explain what are the key factors causing the Crypto market to travel down. As you all know, earlier in May, Bitcoin crash has been caused by Elon Musk tweeting in favor of Dogecoin and also Tesla making a U-Turn on accepting Bitcoin as payment for its products and China turning down on Initial Coin Offerings, block exchanges and warned against speculative trading.

Bitcoins Fall 

Bitcoin is down by almost 10% on Monday while other coins like Ether dropped the maximum amount as 6.5% within the last 24 hours, falling below $2,000 for the primary time in almost a month. Dogecoin also declined 26.9% to trade around $0.186.

The world's biggest cryptocurrency Bitcoin, has lost over 20% by market capitalization within the last six days alone and is down by half from its April peak of just about $65,000. However, it's still gained over 10% this year.

China's part in crypto crash 

China has ordered payment platform Alipay and domestic banks to to not provide services linked to trading of virtual currencies. The institutions were also ordered to chop off payment channels for crypto exchanges and over the counter platforms, the People's Bank of China mentioned in an exceedingly statement.

Separately, a Chinese city with abundant hydropower has stepped up action to rule out mining. A Ya’an government official told a minimum of one Bitcoin miner that the town has promised to uproot all Bitcoin and Ether mining operations with a year, sources told Bloomberg. Some commentators, as reported by Bloomberg, have said China’s hash rate (the computational power wont to mine coins and process blockchain transactions) is waning amid harsher regulatory oversight. 

Production of bitcoin in China accounted last year for about 65% of worldwide production, consistent with data from the University of Cambridge, with Sichuan its second biggest producer. Companies that are involved in mining process of Bitcoin are directly tied to energy intensive process, typically they hold large inventories for cryptocurrency, with any moves to sell large amounts at a depressing prices.

Future of Crypto

Hugely, cryptocurrency has become a superior and innovation to the physical currencies. Majorly, this is often because it doesn't require an excessive amount of infrastructure to figure. Let's take the instance of Bitcoin; it is stored on a phone, computer, or cloud. The advantage of Bitcoin is that it's secure and hard to forge. The creation of Bitcoin may be a complex process so it’s hard to govern the system. Therefore, it's hard to compromise the Bitcoin currency.

Earlier Monday, MicroStrategy announced it had completed another round of Bitcoin purchase, bringing its total holdings to over 100,000. In its latest purchase, the corporate spent roughly $489 million on 13,005 tokens. Surprisingly, some big companies like Tesla, Paypal and Mastercard have invested in Bitcoin cryptocurrency thanks to the advantages it brings. a serious advantage of using cryptocurrency is that it makes it easier to pay employees more conveniently.

There's a high potential for cryptocurrency, which can evolve with time. In some countries, cryptocurrency is quickly accepted as a store important, however, it's going to not be fully ideal for transactions if there are better alternatives.