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Why are the prices of cryptocurrencies plummeting today?

Bitcoin fell to $58,703 at one time. Dogecoin experienced a drop as well. Crypto prices have dropped due to significant profit booking, according to industry experts.

On November 16, the top cryptocurrencies experienced a significant drop. Bitcoin fell to $58,703 at one time. It later recovered and was trading at roughly $60,066 at the time. Ether saw a downtrend as well, and was trading at a 7.88 percent discount ($4,340) to its previous price.

What is behind today’s drop in bitcoin prices?

Crypto prices have dropped due to significant profit booking, according to industry experts. For the next one or two days, the cryptocurrency market is likely to remain volatile. This could possibly be owing to China’s anti-mining policies. The National Development and Reform Commission (NDRC), Beijing’s primary economic regulator, has indicated that it will tighten controls on digital currency mining in order to save energy and reduce carbon emissions.

According to Meng Wei, an NDRC spokeswoman, the hazards associated with the creation and trade of cryptos are becoming more visible, and they are having negative consequences for economic and social growth, emission reduction, and energy conservation.

‘All private cryptocurrencies are not legal tender,’ says the statement.

In a letter to VHP leader Sanju Yadav, Union Deputy Director (Currency) Sanju Yadav stated that while all private cryptos are still not regarded legal cash in India, the government may create an official digital coin.

According to the letter, “In its report, the inter-ministerial committee (IMC) established under the chairmanship of the secretary of economic affairs to study the issues surrounding virtual currencies (VCs) and propose specifications to be taken in this matter recommended that all private cryptocurrencies be prohibited in India, with the exception of any cryptocurrency issued by the government. Furthermore, the committee believes that keeping an open mind towards the introduction of an official digital currency in India is a good idea. The government would make a choice based on the IMC’s advice, and the legislative proposal, if any, would then be tabled in parliament.”

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