When will the crypto market rise again? | Why WazirX is in bad condition?

When will the crypto market rise again? 

The Indian stock market is trading in the red mark for a few days. Not only is the condition of the world markets, but the Indian market is also not good. But the cryptocurrency market, which has been facing a decline for the past several days, has also not remained untouched by it. There is little hope about crypto for one thing, but in the second moment, the pressure starts on the investors.

 

Especially the falling market has wreaked havoc on new and small investors. Investors are not able to understand whether they are sustainable or not, seeing the high risk and market volatility. Is there any improvement expected in the coming days? Talking about Bitcoin, the currency made a high of over $67,000 in November last year? Since then it has fallen by more than a third due to slowdowns and other reasons.

 

Nearly two trillion dollars were wiped out from the crypto market. Investors suffered

heavy losses. At the same time, since June 15, bitcoin is trading between $18,000 to $ 50,000. Let us tell you that the decline in the market was affected by the increase in the interest rate of the Central Bank to control inflation. The increase in the Federal Reserve's base in the US made it more expensive for consumers and businesses to borrow money.

 

This increased the operational cost of the business. The production cost of goods and services increased. Everything became expensive, which had a direct effect on the crypto market including bitcoin. The increase in interest rates in the US once again last week had an impact on the markets around the world. Since then, be it in India or US, crypto investors are keeping a close eye on the monetary policy. 

Along with this, digital currency has been very much associated with the US stock markets this year. Higher interest rates have put pressure on the S&P and Nasdaq, which have also affected other risky assets such as cryptocurrencies. Not only small but big investors are also seen shying away from investing in crypto due to the market slow down. 

Billionaire investor Jeffery Gundlach, CEO of Investments Management and Investments for Double Line Capital generally wait for the price of the digital currency to drop to buy cryptocurrency, but according to the report investor Jeffery Gundlach is now facing a market slowdown. He says that he will not buy crypto in the bearish trend of the market because there are some steps from the Federal Reserve that can have a big impact on the market. 

The Economist believes that interest rates are expected to increase in the coming times to curb the inflation rate. These reasons have led to bankruptcy in the crypto industry and due to this investors are holding back. Apart from this, the regulators are constantly expressing mistrust in virtual digital assets and fears of sinking people's money. 

The market regulator has warned about cryptocurrency in some countries. Last year, China banned the mining of bitcoin along with crypto-related transactions. In the midst of all this, investor sentiments have been hurt. If we talk about India, those investing in crypto here have been facing the strict attitude of the government for a long time. 

After the introduction of 1% TDS after 30% tax, many such investors have started retreating. Many crypto funds have moved overseas. At present, the Government of India is in the process of making rules regarding this. On the other hand, it is not even that there is only negative sentiment in the market, but a report by Chainalysis shows that crypto adoption has increased across the world. 

Despite the bearish market, crypto investors remain in the market and new investors are also coming into the market. Apart from this, in India too, the government has not yet advocated for the ban. the government said it needed to be regulated. So the news is coming that the Government of India is in the final stages of the bill and a big decision can be taken for this. 

 

Why WazirX is in bad condition?

 

The cryptocurrency market has continued to decline for few months. This has had

an impact on investors to many crypto exchanges. It seems that the situation with the popular crypto exchange WazirX is not good. Talking about the past, ED investigated the crypto exchange platform WazirX. Along with this, a large number of properties were also confiscated. 

The exchange said that his bank account was closed by the ED, which allowed the platform to resume banking after about a month. The situation has worsened only after this act of the same ED. It is reported that WazirX has fired 40 percent of its total employees. This includes members of the company's policy communication and marketing teams. 

Reports suggest that a total of 50-70 employees out of 150 employees have been asked to leave the Exchange. According to the reports, the sacked employees were told on Friday that there would be 45 days of salary. There will be no need to report for the work. The crypto exchange has said in its statement that as India's number exchange, its priority is to be financially stable and continue to serve its customers. 

To achieve this, they will have to reduce their workforce during the downturn in the crypto market. WazirX said in a statement that due to the current global economic slowdown, the crypto market is in the grip of a bigger market or the situation is the same as it was before the industry in 2018. They believe that when the bull market comes, they will emerge stronger. 

The Indian crypto market has faced problems regarding tax regulations and banking access. There has been a negative impact on all the Indian crypto exchanges. According to data from Coin Banks, WazirX daily trading volume declined from a one-year high of 478 million on 28 October 2021 to 1.5 million on 1 October 2022. 

Reports suggest that the trading volume has also been less than one million for a few days and this is not enough for the company. The Nischal Shetty-led company WazirX has been under scrutiny for more than a year. The matter escalated when Binance CEO Changpeng Zhao said hours after the ED seized WazirX bank accounts that he did not own the rights to WazirX. 

It is believed that either this deal was completed between the two companies in 2019. Due to this, a Twitter dispute also surfaced between WazirX founder Nischal Shetty and Changpeng Zhao on August 6 and 7. Binance also removed the off-chain fund transfer channel between WazirX-Binance off-chain fund transfers are transactions that take place outside the blockchain network.

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