On Wednesday, May 19, Bitcoin, Dogecoin, and other popular cryptocurrencies such as Ether, Matic, and Binance Coin all dropped sharply, causing a trading rush that Indian exchanges struggled to handle. According to data from Binance, a global cryptocurrency exchange that also operates WazirX in India, Bitcoin, the largest and most popular cryptocurrency in the world with a market cap of over $1 trillion that is roughly Rs. 73,00,000 crore, was trading dangerously close to $30,000 that is roughly Rs. 22 lakh at around 7 pm IST on Wednesday — a 21 percent drop — before quickly recovering.
The price of Dogecoin plummeted even further, to as low as $XX (roughly Rs. 19), and has only managed a partial recovery so far.
According to Coinbase data from the previous 24 hours updated at 12:30 pm IST today, the overall cryptocurrency market was down close to 10%. While Bitcoin (price in India) quickly recovered from its 24-hour low, trading at nearly $40,000 (roughly Rs. 29 lakh), Dogecoin (price in India) was down 11%, trading at $0.35 (roughly Rs. 26), according to the most recent data. The last 24 hours’ trading volumes on Coinbase also show Ether (price in India) trading 9% lower at $2,700 (roughly Rs. 1,96,576), Binance Coin (BNB) trading 15% lower at $356 (roughly Rs. 26,000), and Ripple (price in India) trading 19% lower at $364. (roughly Rs. 26,600).
China’s announcement of a ban on cryptocurrency trading is said to have influenced the cryptocurrency market’s recent decline. The blanket ban prevents banks and other online payment platforms in the country from providing any cryptocurrency-related services. Although crypto exchanges have been banned in China, individuals are still allowed to own digital assets.
This comes on the heels of cryptocurrency backers such as Elon Musk, dubbed “Dogefather,” raising concerns about the impact of cryptocurrency mining on the environment. He recently announced that Tesla would no longer accept Bitcoin as payment for Tesla cars until a solution to the massive energy required for its mining was found, which had a significant impact on Bitcoin and Ether prices. And, despite his recent announcement that he was working with Dogecoin developers to improve the transaction efficiency of the cryptocurrency’s mining (also known as digging because dogs don’t mine, they dig), the recent cryptocurrency market downturn spared no major digital asset, including Ripple (XPR), whose mining requires far less energy than Bitcoin and Ether.
Market watchers and proponents of cryptocurrency believe the recent drop is more of a healthy market correction than a crash. In the midst of the falling crypto prices, India’s WazirX Co-Founder Siddharth Menon tweeted on Wednesday that a market correction was a good thing. Regardless, Bitcoin, which has many supporters, including Twitter CEO Jack Dorsey, is down nearly 40% from its all-time high of $64,804 (roughly Rs. 47.4 lakh) in April of this year.