Jakarta, CNBC Indonesia – Crypto currency experiencing crash again in May, just weeks after setting an all-time high. In the previous 2 weeks, the price of bitcoin cs plunged insanely, while this week it was more stable although still not separated from the downward trend.
On trading Sunday (30/5/2021), the price of bitcoin fell 4.23% at US$ 33,717.9/BTC or equivalent to Rp 482 million/coin (exchange rate of Rp 14,300/US$), at 8:38 WIB, launch data from Refinitiv. With this decline, the total price for this month has fallen by more than 40%, even on May 19, it almost broke below US$ 30,000/BTC.
At the same time, the price of ethereum fell more than 9% to US$ 2,206.69/ETH, while so far this month its value has fallen by 20%.
Ripple is worse than bitcoin, during the month of May fell almost 50%, and this morning minus 8%.
Then dogecoin today slumped more than 8%, while throughout the month of May the decline was the smallest, only 5%.
Except for dogecoin, bitcoin and the other cryptocurrencies mentioned above have actually strengthened this week. Bitcoin, for example, is up about 4% after a “terrible” 2 weeks.
However, Edward Moya, an analyst at Oanda Corporation, warns that the crypto market is still unstable.
“Volatility in the crypto market has decreased this week, but probably won’t last long,” Moya said, as reported by Express, Sunday (30/5/2021).
“Bitcoin is still in the consolidation phase, but if the $37,000/BTC level gains momentum, then bitcoin’s position will deteriorate rapidly,” he added.
The price of bitcoin is already below that level, so the risk of a continued decline in bitcoin is even greater.
The drop in the price of bitcoin CS occurred after getting “resistance” from several countries. China under President Xi Jinping’s administration has banned financial institutions such as banks and payment fintechs from providing cryptocurrency transaction services. In addition, China will also issue new rules to crack down on miners and cryptocurrency trades.
Then there was US President Joe Biden who imposed tax reporting for crypto transactions above a certain value, this time Iran also banned it.
The Iranian government also announced a temporary ban on mining bitcoin and other cryptocurrencies on Wednesday (26/5/2021). The reason, officials called the activity “wasteful” of energy and caused power outages in several cities in Iran.
In addition, Elon Musk who made cryptocurrency prices skyrocket this year also made him reverse course after announcing Tesla stopped using bitcoin in Tesla car purchases. The reason, bitcoin mining triggers an increase in the use of fossil fuels that are not environmentally friendly.
“Tesla has suspended the purchase of vehicles using Bitcoin. We are concerned about the rapid increase in the use of fossil fuels for mining and Bitcoin transactions, especially coal, which has the worst emissions of any fuel,” Elon Musk tweeted in mid-May.
CNBC INDONESIA RESEARCH TEAM
(pap / pap)
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