If you are connected to the world of cryptocurrencies, then you might have an update about the recent fall in the value of this digital currency. The bitcoins and the entire crypto market were thrown in the deep pit leading to a billion dollars loss for the investors. Everything was going normal, and a few weeks ago, the value of bitcoins broke its record by reaching the highest point at $65,000+. But some of the tweets and global events have lead to shocking falls, which has reduced the value of this digital currency to almost $30,200. In recent times, the investors who had entered the crypto world are left with nothing but a shock because they had invested in the digital currency after noticing the high rise in its value, which was instant and sometimes steady.
- This dip in the value of bitcoin has resulted in an almost 50 percent fall in its value, which is really a very strange thing for bitcoin owners as this type of fall had not been witnessed for many years. Even the value of many other digital currencies had been declined up to 30 percent, which means that the entire market is disturbed by the frequent fall in the value of bitcoins.
- After all, bitcoins are the digital currency based on the decentralized network, which is why it has started recovering and again reached $40,000, which is offering some sense of relaxation to the investors. But it has been noticed that as compared to the previous recovery speed, this time, the recovery rate is much lower, which means that it will take more time for every digital currency such as Dogecoins, Ethereum to recover. To know more about the bitcoin network, you can click here.
- The warning listed by China to its banking institution has again affected the value of bitcoins which has reduced the value again to $ 37,000. China is also taking a measure to clamp down cryptocurrency mining activities which have raised to an excessive level.
- Many of the experts and bitcoin analysts have claimed that market correction of bitcoin will naturally take place. Several measures have been taken for recovery of the market, but it does seem to be a possible task at the present time because bitcoin has the potential to recover itself without requiring technical support from the technicians.
Who can be blamed for the retracement of bitcoins that occurred in the weeks?
The main blame by everyone to the situation of bitcoin at present is to Elon Musk, who is the owner of Tesla. The bearish tweet by Musk took bitcoins to a huge level which everyone really liked. But the recent news of preventing the use of bitcoins for buying Tesla vehicles has created a fall in the value of bitcoins. He mentioned about the harm to the environment is getting raised at an excessive level, and this is all because of bitcoin mining as it requires a surplus amount of fossil fuels for the process.
But the strange part is that while banning the use of bitcoins, he has endorsed the substitutes of bitcoins such as Dogecoins and Shiba Inu. These both are meme coins, but the rise in value has been observed after the endorsement done by Elon Musk. He dubbed Dogecoins as “the People’s crypto,” which resulted in the positive growth of this digital currency.
The announcement about the no use of bitcoin created fear and uncertainty among the investors who have invested their hard-earned income in the digital currency. The worst part is that rumors were in a trend that Tesla is soon going to dump its Bitcoins that are worth $1.5 billion, but this has been corrected by Musk that he will not take such action until there is an arrangement of the better and sustainable source to mine bitcoins.
You would be aware that China has imposed a ban on cryptocurrencies since 2017, and new regulations have been implemented by the central bank against these digital currencies. It is clearly mentioned in the rules that virtual currencies are not supported by any real value.
The recent move was taken on May 18th when the Central bank of China issued a document for stopping three associations from managing or performing any business related to digital currencies. This means that the specific financial institution will no longer able to offer services to the users associated with cryptocurrencies.