FinancialCentre Explains Why Etherem and Bitcoin Took a Hit

London, UK, 2nd Oct 2021, ZEXPRWIRE – FinancialCentre’s broker Vincent Renser ran a survey on currency trading this week and has reportedly asserted that investment choices like Ethereum and Bitcoin have dropped by 7%, even though they are still much higher than they were previously.

Despite that, Ethereum and Bitcoin are two examples of digital currencies that have recently seen significant growth. Their prices have skyrocketed over the past few months. However, the broker at FinancialCentre claims that the declines are a result of speculations made about the future of cryptocurrency..

Regulation of Cryptocurrency Trading

The FinancialCentre claims that they have taken several steps to regulate cryptocurrency trading. Additionally, the authorities of several countries have been working to limit or prohibit cryptocurrency transactions.

For many traders in the market for cryptocurrencies, the last few days have proven to be quite eventful. Both Bitcoin and Ethereum have both suffered high volume dips. For instance, Ethereum has gone from trading at $3139.09 yesterday to trading at $3065.08 today. As a whole, the cryptocurrency market cap is down more than 8% since last Monday.

A FinancialCentre’s broker says, “This is not the first time we have seen a fall of this nature in cryptocurrency values. But these declines are less severe than those in early 2018 when fears of cryptocurrency being banned circulated the market.” It is due to this fact that the FinancialCentre’s brokers believe that these cryptocurrencies will still continue to grow. As such, it is clear that they will be useful over the longer term, despite the recent decline.

Ethereum has recently been attracting a lot of attention because it’s not only faster than bitcoin, but also doesn’t have limits on how many transactions can be processed at one time. Moreover, it contributes significantly less to the carbon footprint, like Bitcoin does.

Bitcoin and Ethereum’s Future

Economic experts are not the only ones that have been discussing cryptocurrency’s future; other sources, like several social media influencers, have also been involved. This is another reason why these currencies are worth investing in despite their current decline.

The views of the FinancialCentre’s brokers and analysts claim that digital currencies may be losing hype because they are too complicated for people to understand. It has been reported by them that if these items could be further simplified, then they could see more gains in the future.

The drop in the value of cryptocurrency has investors who put their money into initial coin offerings (ICOs) worried about what this might mean. Currently, investors can sell cryptocurrency for a loss and claim the tax benefit, but they are required to buy it back after it rebounds in price or when you want an immediate return on your investment.

You cannot claim capital loss tax relief. This means any losses made from the sale of cryptocurrency coins and tokens could be used to offset gains made elsewhere – or even your taxable income if your losses exceed all other sources of income.

Conclusion

Ethereum and Bitcoin took hits because of speculations about their future. The FinancialCentre’s broker believes that digital currencies like Ethereum and Bitcoin will continue to rise in value, despite the recent dip. These currencies are getting increased attention due to their impressive growth. According to many speculations, regulation of the cryptocurrency will improve the market.

However, it is to be seen whether the declines experienced in the past couple of days are actually the beginning of a declining trend or whether they will soon recover.

Disclaimer: Our content is intended to be used for informational purposes only. It is very important to do your own research before making any investment based on your own personal circumstances. You should take independent financial advice from a professional in connection with, or independently research and verify, any information that you find on this article and wish to rely upon, whether for the purpose of making an investment decision or otherwise.