Crypto Market Sees Big decline, Bitcoin Price down to USD 93,000

Strong economic data in America has had a big impact on the crypto market. Due to the strengthening of the economy, there is a possibility of the Federal Reserve in America backing down from cutting rates. There was a huge decline in the crypto market on Wednesday. The price of Bitcoin, the largest cryptocurrency in terms of market value, has declined by more than four percent.

At the time of writing this report, US crypto exchanges Binance But the price of Bitcoin fell by more than four percent to around $93,270. Recently Bitcoin had again crossed the level of one lakh dollars. Ether, the second hottest cryptocurrency, had a loss of more than six percent. The price of Ether was trading at around $3,320. Apart from this, the prices of Solana and XRP have also decreased.

Bitcoin’s share in the crypto market is about 56 percent. The interest of institutional investors in this most popular cryptocurrency is also increasing. Enterprise software maker MicroStrategy purchased large amounts of Bitcoin for the eighth consecutive week in late December. It is the company with the largest holding of Bitcoin. MicroStrategy holds approximately 4,46,000 Bitcoins.

Recently this company had said that it can buy Bitcoin by issuing more shares this year. However, questions are also being raised on MicroStrategy’s strategy of buying Bitcoin by selling shares. During the presidential election campaign in America, Donald Trump had hinted at creating a reserve of Bitcoin. The Federal Reserve says it does not intend to get involved in an upcoming government plan to create a large stockpile of Bitcoin. Russian companies are using Bitcoin in their business abroad. Russia had changed the law to allow the use of cryptocurrencies to deal with the restrictions of Western countries. Russian President Vladimir Putin had said that the US government is reducing the role of the US dollar by using it for political purposes. Because of this many countries are having to turn to other assets. Ukraine says it will try to stop the use of cryptocurrencies by Russian companies.