The negative news of the last week has significantly diminished the enthusiasm for Bitcoin.
On May 12, Tesla CEO Elon Musk said the electric vehicle manufacturer had suspended purchases of vehicles using bitcoin, citing environmental concerns. Musk’s comments caused more than $ 300 billion to disappear from the entire cryptocurrency market that day. The announcement to suspend bitcoin came just three months after Tesla revealed it had bought $ 1.5 billion worth of bitcoin and would begin accepting bitcoin in exchange for its products.
Then, on Tuesday, three Chinese banking and payments agencies issued a statement warning financial institutions not to engage in virtual currency-related activities, including trading or exchanging money. CNBC.
China’s hard line on digital currencies is not new. In 2017, authorities shut down local cryptocurrency exchanges and banned so-called initial coin offerings (ICOs), a way for companies to raise money by issuing new digital tokens.
The decline of Bitcoin has led to a chain effect on the cryptocurrency market. Ether, the digital currency that powers the Ethereum blockchain, fell nearly 15 percent to $ 3,001.70. Dogecoin, a cryptocurrency that initially started as a joke, fell more than 18 percent to $ 0.4076, according to Coinmarketcap.com.
About $ 280 billion has been wiped out of the entire cryptocurrency market in the last 24 hours.
However, there is also good news for Bitcoin. Analysts expect the decline to stop around $ 35,000-40,000
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