Bitcoin’s downwards spiral continues on Sunday as the world’s biggest and best-known cryptocurrency has gone down 47.4% from this year’s peak of $64,895.22 on April 14.
Bitcoin fell a further 8.9% to $34,156 on Sunday compared to the previous day.
Ether , the coin linked to the ethereum blockchain network, dropped 11.5% to $2,031.96 on Sunday, down $264.35 from its previous close.
Why is Bitcoin’s Price falling?
Unlike trading in traditional currencies, Bitcoin is not issued by a central bank or backed by a government; therefore, the monetary policy, inflation rates, and economic growth measurements that typically influence the value of currency do not apply to bitcoin. Contrarily, bitcoin prices are influenced by the following factors:
- The supply of bitcoin and the market’s demand for it
- The cost of producing a bitcoin through the mining process
- The rewards issued to bitcoin miners for verifying transactions to the blockchain
- The number of competing cryptocurrencies
- The exchanges it trades on
- Regulations governing its sale
- Its internal governance
Earlier this year, Nigeria’s Central Bank issued a regulatory directing local banks to close all accounts associated with any crypto currency.
This led many Nigerian traders to sell off their assets.
Nigeria is not the only country to ban crypto currencies, China, Bangladesh, Chile among others have regulations restricting citizens from trading crypto currencies.