Why are Cryptocurrency prices falling today? Here's why the crypto market is going down

The top cryptocurrencies fell sharply on November 16. Bitcoin at one point plummeted to $58,703. However, it later recovered and was trading at around $60,066. Ether also saw a down surge and was trading at 7.88% on discount ($4,340) than its price 24 hours ago.

Dogecoin and Shiba Inu also saw a fall and were trading at 5.66% and 4.75% lower respectively. The value of Cardano and XRP also fell. Binance Coin also fell to $607.23, declining by 7.23%. Meanwhile, in contrast, the Tether rose by 0.09% to $1 in the past 24 hours. 

Why are cryptocurrency prices falling today?

According to market experts, the fall in crypto prices was due to massive profit booking. The cryptocurrency market is likely to remain volatile for the next one or two days. This could be also due to China's crackdown against mining. Beijing's top economic regulator National Development and Reform Commission (NDRC) stated that it will intensify regulations over digital currency mining to save energy and decrease carbon emission. 

Meng Wei, a spokesperson for the NDRC, said that risks from the production and trading of cryptos are becoming prominent and it has adverse effects on economic and social development, emission reduction and energy conservation.

'All private cryptocurrencies not considered as legal tender'

In a letter to VHP leader, Union Deputy Director (Currency) Sanju Yadav said that all private cryptos are still not considered legal tender in India, but the Centre may come up with an official digital coin.

The letter reads, "Inter-ministerial committee (IMC) constituted under the chairmanship of secretary economic affairs to study the issues related to virtual currencies (VCs) and propose specifications to be taken in this matter recommended in its report that all private cryptocurrencies except any cryptocurrency issued by the State, be prohibited in India. Further, the committee was of the view that it would be advisable to have an open mind regarding the introduction of an official digital currency in India. The government would take a decision on the recommendation of the IMC and the legislative proposal, if any, would be introduced in the parliament following the process."

Image: Unsplash, Representative