Bitcoin suffers big decline, price falls to USD54,300

Bitcoin, the largest cryptocurrency in terms of market value, fell more than eight percent on Friday. Its price was around $ 54,300 on international exchanges like CoinMarketCap. Bitcoin was trading at $ 60,817 on Indian exchanges.

The price of Ether has also fallen. It was at a three-month low of $2,887 on international exchanges. Its price on Indian exchanges was around $3,234. Crypto The main reason for the decline in the market is that more than two lakh traders have liquidated positions worth more than $679 million in the last one day. Liquidation means closing a trader’s position in the market in a situation when the trader’s margin account does not support his open positions. This happens when the trader does not have enough margin to maintain the balance.

The prices of Polygon, Litecoin, Stellar and Polkadot have also fallen. The market capitalization of crypto fell by 8.32 percent to around $1.99 trillion in the past one day. The markets desk of crypto app CoinSwitch told Gadgets360, “The sell-off in Bitcoin has led to a decline in its price. This has shocked the crypto market. The prices of some cryptocurrencies have fallen by up to 20 percent.”

Late last month, Bolivia lifted the ban on bitcoin imposed almost a decade ago. Its aim is to balance the country’s economy and modernize payment systems. Bolivia has become the first country in Latin America to take steps in favor of crypto. However, its central bank has not given bitcoin or other cryptocurrencies the status of legal currency. Bolivia’s central bank has also allowed banks to make crypto transactions. Banco Central de Bolivia had said that it is withdrawing the ban imposed on payments from cryptocurrencies, including bitcoin payments. The debt in this country is expected to increase to more than $ 21 billion by 2029. Banco Central de Bolivia has decided to allow banks to use acceptance electronic channels and facilitate crypto payments. It has not recognized bitcoin or other cryptocurrencies as legal currency.