The cryptocurrencies have experienced in recent days a great volatility, with sharp drops and rises caused by the decisions taken by the chinese authorities and of Tesla and its CEO, Elon Musk, which coincide with the eleventh anniversary of the first transaction with bitcoin, one of the most popular.
Specifically, this cryptocurrency traded this Friday at the close of the Spanish market with losses of 9.44%, equivalent to $ 3,871, and stood at $ 37,508 (30,780 euros), while the ethereum It fell 14.23%, about $ 414, to settle at $ 2,485 (2,039 euros).
With these data, the bitcoin loses 41% since reaching its all-time high of almost $ 64,000 (52,400 euros) on April 13, while ethereum left 40.4% compared to its 4,173 dollars (3,418 euros), registered on May 12.
Last week, Musk announced on Twitter that his company would stop accepting bitcoin as payment. due to the use of fossil fuels for the mining process of cryptocurrencies and the management of their transactions.
Use of fuels
“Tesla has suspended purchases of vehicles with bitcoin. We are concerned about the increasing use of fossil fuels for the mining process of cryptocurrencies and transactions of bitcoins, especially coal, which has the worst emissions of any fuel,” announced the billionaire.
This decision caused the price of these assets to sink, with bitcoin reaching $ 47,919 (39,309 euros) and ethereum, 3,584 (2,940 euros).
Likewise, the XTB analyst, Darío García, has recalled in statements to Europa Press that Musk had already shaken these markets a few weeks earlier by saying during his visit to the Saturday Night Live program that dogecoin was a “meme currency.”
But the falls did not stop there: on Wednesday, the Chinese authorities banned relevant financial and payment service entities from taking part in the cryptocurrency business.
Strong fixes
The decision caused both bitcoin and ethereum to suffer strong corrections of up to 20%, to 34,515 (28,315 euros) and 2,486 dollars (2,039 euros), respectively.
The price of both assets rebounded on Thursday at noon: it turned around at around 2:30 p.m. and an hour later, it experienced increases of over 20% due to a tweet from Musk in support of dogecoin, a type of post that tends to animate all of these assets.
The joy did not last long and in the late afternoon they returned to register falls due to the decision of the US Treasury to force that any transfer over 10,000 dollars (8,186 euros) be reported to the IRS (Internal Revenue Service, for its acronym in English).
The last downward movement comes back from China. The Asian giant plans to take measures against bitcoin mining activity and against certain behavior when trading these types of assets. This has made, again, cryptoactive again register sharp falls close to 12%.
This volatility is not unusual in cryptocurrencies, whose price varies a lot, although it is true that such sharp drops and rises do not usually occur in such a short space of time.
Specific movements
The IG analyst, Diego Morín, highlighted in a comment sent to Europa Press that it must be taken into account that “the correction that is taking place in the market is normal and natural”, since it was in a continuous overbought and “no I had ‘gas’ to keep breaking resistance “.
Morín also highlighted the speculative movements produced by those price drops that “strong hands” have taken advantage of to eliminate retailers, which has allowed them “to re-enter more attractive prices to continue their upward course.” “We will see if it is a mere rebound or a consolidation of prices,” he said.
Despite the falls registered in the last week, García defended a few days ago in statements to Europa Press that crypto assets were the ones that had performed the best against inflation.
This Sunday May 22nd eleven years of the first bitcoin transaction in history: user Laszlo Hayneck paid 10,000 bitcoin for two pizzas in Jacksonville (Florida, USA). What at that time was around $ 30 (24.63 euros), would now be 375.08 million (308 million euros).
Bitcoin did not reach the dollar until February 2011 and by July of that year, it was already worth $ 31 (25 euros). Two years later, it rose to almost 300 (246 euros) and at the end of 2017, it starred in a ‘rally’ that raised it to 20,000 dollars (16,400 euros).
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The crash was as strong as the rise and as of February 2018, it was worth $ 6,400 (5,256 euros). Since then, the cryptocurrency has registered strong rises followed by strong falls, although it was not until March that we saw a drop of that caliber: from the $ 9,000 at which it was listed, it fell to $ 4,000 (3,285 euros).
As of that date, the asset began a bullish ‘rally’ that has only slowed down now, since as of October several corporations such as Mastercard, Paypal or BBVA began to accept operations with bitcoin.
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