Thinking Bitcoin will make you rich? The numbers since last year till today show that the price of the most popular crypto asset has actually fallen by over 43 percent.
According to data on CoinGecko, Bitcoin price has fallen by 43.8 percent in one year. In the last 30 days, BTC price is down by 21.9 percent.
Bitcoin was worth $58,771 on 9th May 2021. At the time of writing this report, BTC was worth just around $33,000. On Indian exchanges, BTC was worth Rs 26.8 lakh.
There are several topical reasons behind the falling price of Bitcoin and other cryptos. The most prominent one being the recent announcement of US Federal Reserve that interest rate would rise by 0.5%.
The “Coinbase premium index”, which shows the spread between Coinbase’s BTC/US dollar pair and Binance’s BTC/USDT pair, recently turned negative, falling to a 12-month low.
According to data tracked by South Korea-based Cryptoquant, popular indicators suggest institutions are selling into a falling market.
“Usually, there is a Coinbase premium. This means that the bitcoin price on Coinbase is higher than on Binance. This was/is very important, because American institutions and HNW (High Net Worth) were trading mostly on Coinbase. However… in the latest few days it’s negative. This indicates heavy selling on Coinbase Pro!,” Cryptoquant said in a blog.
Crypto experts suggest to view crypto tokens as a long-term investment. However, especially in India, regulatory uncertainty and introduction of a punishing crypto tax regime are quickly turning the new-age virtual digital assets less attractive.
The Government is now also expected to bring crypto activities under the ambit of Goods and Services Tax, which reports suggesting there might be a 28% GST on crypto, much like gambling, casinos and horse racing.
Meanwhile, the prices of several top cryptos have also fallen in the last 24 hours and the overall global crypto market cap shrunk to $1.5 trillion.