Why is the cryptocurrency market experiencing a downturn today?
THE CRYPTOMARKET has crashed yet again, demonstrating the ephemeral nature of coins such as Bitcoin, Dogecoin, and Etherum.
Bitcoin's price, the largest cryptocurrency on the market, has fallen nearly 7% in the last 24 hours.
According to Coinmarketcap, it is currently worth around $32,370, having nearly halved in value since reaching $64,000 in April.
Etheruem, the second largest cryptocurrency, has also seen a decline in value over the last 24 hours, as have other popular coins such as Dogecoin, Cardano, and XRP.
This follows a string of global crackdowns on the cryptocurrency market.
Binance, the world's largest cryptocurrency exchange, was banned from operating in the United Kingdom last month by the country's financial watchdog.
While British residents can continue to buy and trade coins on the platform, Binance is no longer permitted to engage in "any regulated activity" in the UK.
China is also cracking down on cryptocurrency mining, the energy-intensive process by which new coins are created.
Numerous authorities throughout the country, including the Sichuan province, have ordered the closure of crypto-mining projects.
It was one of several coins that were struck with a hammer.
Iran has banned cryptocurrency mining, including Bitcoin, for nearly four months due to the country's frequent blackouts, and mining consumes a lot of energy.
Meanwhile, poster advertisements for cryptocurrency platform Luno have been banned due to their omission of information about the risks associated with Bitcoin investments.
This extreme volatility and the ensuing sharp market declines are just one of the reasons why investing in cryptocurrency is a high-risk endeavor.
You may end up with less money than you invested, and markets can swing dramatically in the blink of an eye.
You may lose access to your investment if platforms go down, leaving you unable to convert crypto to cash.
Additionally, there have been warnings about cryptocurrency scams, with people losing large sums of money.
You should never invest in something you do not understand, and you should never risk losing all of your money.
Which cryptocurrencies are experiencing a decline in value?
Bitcoin, the most popular cryptocurrency, is currently trading at $32,370, down nearly 7% from yesterday's closing price, according to Coinmarketcap.
Other cryptocurrencies, including Ethereum and Dogecoin, have also experienced a price collapse.
Ethereum, the second-largest cryptocurrency by market capitalization, is down nearly 9% in the last 24 hours to $2,172.80, while Dogecoin is down 9% to $0.2126.
Shiba Inu, Dogecoin's rival, is also down 9 percent to $0.000007871.
Why are cryptocurrency markets collapsing?
Cryptocurrencies have recently taken a number of blows as a result of a number of regulators and authorities cracking down on the market.
Binance's ban in the UK is a major "red flag" for investors, Susannah Streeter, Hargreaves Lansdown's senior investment and markets analyst, previously told The Sun.
According to Financial Times reports, Brits have been having difficulty withdrawing and depositing money into their Binance accounts following the ban.
The UK is not the only country cracking down on cryptocurrency.
Numerous cryptocurrency mining regions in China are drastically scaling back operations.
Miners create new cryptocurrencies by running complex computer code in a time-consuming process that consumes a lot of energy and requires a lot of computing power.
Last month, authorities in China's southwest province of Sichuan ordered the closure of crypto-mining operations.
It came after Beijing declared war on Bitcoin mining and trading as part of a slew of financial risk-control measures.
The crypto market's first sign of trouble came last month, when Elon Musk announced that Tesla would no longer accept Bitcoin for vehicle purchases.
Tesla CEO Elon Musk has previously inflated the value of currencies by mentioning them on Twitter or in press statements.
"We are concerned about the rapidly increasing use of fossil fuels for Bitcoin mining and transactions," he wrote on his personal Twitter account, "particularly coal, which has the highest emissions of any fuel."
Within minutes, Bitcoin began to fall. Other cryptocurrencies quickly followed suit, with several popular coins experiencing a significant drop in value.
Coins suffered another significant setback in April, when Turkey's central bank prohibited the use of cryptocurrencies for payment.