No matter the price of bitcoin increases or decreases, it is always a topic of discussion and is also the hottest topic in the cryptocurrency market. It is a very famous volatile digital currency which is falling and falling for the last few weeks. It has reached as low as US$30,000, which is the lowest price of bitcoin since its bull market after 2018. On Wednesday, 19th May 2020, the prices were lowest for the bitcoin cryptocurrency, and it is followed because the banking. 3g institutions of China were warmed by the member’s Administration that higher Association of digital currencies in the financial structure could be a risky step for the future. At 1st, the price declined by 10% on the same date at which China launched such an official notification saying this thing. Also, due to this, bitcoin lost $70 billion market value within a time period of 24 hours only.
The decrease in the value of bitcoin was about 40% since the 13th of April when it was its highest price, $64,800, according to BTC investment. China was not only the main reason because of which the prices of bitcoin started declining. Before China, it was the owner of Tesla who declined to accept cryptocurrencies in exchange for their latest electronic-driven vehicle for the common purpose of decreasing the CO2 emissions in the environment. Also, Washington is deciding to further tighten the regulations and restrictions on the trading and investment of cryptocurrencies which also is an important reason for the high dip in prices of bitcoin. Although the prices of bitcoins have fallen drastically, it is still 31% higher in 2021, and it is also 300 times the prices that prevailed any year ago.
The price fall
According to the official statement given by China on 19th May 2021, it said that resolutely refrains are essential to be imposed at the services provided using the digital currencies. The action came in accordance with the high degree of volatility that is faced by cryptocurrencies in today’s market. Chinese officials said that cryptocurrencies like bitcoin are highly volatile, and therefore, it is very risky for the government to keep a hold of such cryptocurrencies. Along with it, the prices of bitcoin fell further due to the statement provided by the industry group. On 19th May 2021, The price of bitcoin decreased by more than 7% at 4:15 PM. The bitcoin price was standing at 40,310 per bitcoin, and other cryptocurrencies also lost their values between 7% to 22%.
Well, even if the cryptocurrency market is affected a lot, there is nothing unusual for bitcoin in this. Bitcoin is a highly volatile cryptocurrency, and even if its prices are falling in thousands of dollars, there is nothing new. Bitcoin has experienced fluctuations in its prices of up to $20,000 in the past, and that also even one day. According to the data, on the last day of trading in 2020, the closing price of bitcoin stood at $30,000, whereas in mid-April, it was touching as high as $65,000.
Does Elon musk have something to do?
If a question is raised in your mind if Elon musk has played an important role in this, you are completely right. In February, the owner of Tesla, which is an electric car company, invested $1.5 billion in bitcoin. Following this investment, it also started accepting bitcoins as payment for its high technology-driven cars. Such actions of this huge tech giant led to the bitcoin price. It is not only the bitcoin that has the effect of Tesla on it, but other cryptocurrencies like dogecoin Have also experienced an increase in their prices after the comments of Elon musk about them.
After a very short duration of time, the owner of Tesla changed his mind and made an announcement to the public that Tesla would no longer accept bitcoin due to the potential environmental risk associated with the mining of bitcoins. He said that bitcoin mining is highly damaging to the environment, and therefore, the company cannot accept bitcoins as payment for its vehicles. Due to this, the bitcoins went below $50,000 and also created hope for other cryptocurrencies as in they can take over bitcoin by this. But, the case got completely complicated and different, and the prices of other cryptocurrencies also started declining.