The price of bitcoin continues to fall on Tuesday and fell below $ 30,000. It is the lowest since the end of January. From a high of almost $ 65,000, where it found itself in April, the price of this most famous cryptocurrency has dropped by more than 50 percent. This is shown by records on the specialized website CoinDesk.
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Shortly before 16:00 CEST, the price of bitcoin was around USD 29,162 (CZK 625,500). In the last 24 hours, it has shown a decrease of 12 percent.
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In recent days, the price of bitcoin and other cryptocurrencies has been under increasing pressure from the authorities of several countries, mainly China. At the end of last week, they cracked down on so-called cryptocurrency miners, and the central bank called on financial institutions to stop providing cryptocurrency-related services.
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“In recent days, we have seen greater interest in the sale of bitcoins in connection with the overall market sentiment caused by the cryptocurrency campaign in some Asian markets. At the same time, the USD 30,000 mark is becoming interesting for investors who, on the other hand, intend to buy bitcoin with a view to early appreciation, “Martin Stránský, director of Bit.plus trader, told ČTK. In May alone, cryptocurrencies were traded for CZK 400 million.
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News of the largest crackdown on cryptocurrency miners on Tuesday came from Iran, where police confiscated 7,000 computers on an illegal cryptocurrency farm, Reuters reported. According to the Iranian authorities, the machines are exacerbating power outages in the country. Analyst firm Elliptic estimates that Iran accounts for 4.5 percent of total bitcoin production. The country can use hundreds of millions of dollars from cryptocurrencies to mitigate the effects of US sanctions.
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Iran banned cryptocurrency mining for almost four months at the end of May precisely because of power outage problems. According to officials, they worsen in hot and dry summers due to higher energy consumption.
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Demand for cryptocurrencies is now weak, which analysts have linked to concerns about further regulation. “There is no direct evidence that people in China would buy when prices drop,” said analyst Matthew Lam of the OKEx cryptocurrency exchange.
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Bitcoin rose above $ 64,000 in mid-April, but fell in price by about 35 percent in May. One of the reasons was, on the one hand, the stricter attitude of the authorities in some countries, and, on the other hand, the tweets of the founder of the carmaker Tesla, Elon Muska, who wrote that his company would stop taking bitcoins as payment for his cars.
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