Why the Crypto Market is Down Today?



China’s Latest Comments Led to a Market Dip

The Chinese government has always attacked Bitcoin and other cryptocurrencies. The government hasn’t ever made it a secret that they disliked cryptocurrencies and are decided to root it out in the nation.

The government came out once more to speak out in opposition to cryptocurrency mining and blast Bitcoin. China’s state planner, the National Development and Reform Commission (NDRC), stated during a press conference Tuesday that it is going to continue to clean up virtual currency mining in the nation. The agency’s spokesperson Meng Wei blasted Bitcoin mining, stating that it consumes a lot of energy and generates a lot of carbon emissions. As a outcome, the NDRC is set to release a full-scale clampdown on crypto mining in China and intends to get rid of the task completely.

China’s latest comments on Bitcoin mining resulted in the broader crypto market embarking on a bearish run. Bitcoin lost more than 10% of its price previous today and dropped under the $60k mark for the first time in weeks. The other leading altcoins, including Ether, Binance Coin, Cardano, Solana, Polkadot, XRP and Dogecoin, all lost greater than 7% of their values. The overall cryptocurrency market cap additionally dropped to $2.6 trillion after achieving the $3 trillion mark last week

Crypto Market Outlook Remains Positive

The medium-term outlook for the cryptocurrency market stays positive despite the recent drawback. Bitcoin reached a new all-time high above $69k last week as analysts remain confident it could touch six figures before the end of the year.

The Taproot improve on the Bitcoin network also went live during the weekend, making it the first primary improve on the blockchain since 2017. This has generated a lot of buzz within the crypto space as the update will improve the privacy, scalability and security of the Bitcoin blockchain.

Bitcoin could soar back from the fresh dip over the coming days and weeks and most likely top the $70k psychological level.