Jakarta, CNBC Indonesia – The cryptocurrency market crashed in May, when the price of bitcoin plunged more than 35%. In the first trade of this June, bitcoin still has not been able to rise, even the bad news is that some predict the slump will not end yet.
Not only bitcoin, other cryptocurrencies also posted negative performances in May. According to Refinitiv data, ripple fell more than 37%, while ethereum’s decline was not too big, only 6%. Dogecoin’s decline was also relatively small, around 3%.
Meanwhile, bitcoin ended May at $36,685.94/BTC, down 35.42%. Meanwhile, today, Tuesday (1/6/2021) the price of bitcoin fell again 1.14% to US$ 36,269.33/BTC.
The price of bitcoin hit a record high of $64,899.97/BTC on April 14. That is, from that record to the position of the end of May the price of bitcoin fell more than 43%. The cryptocurrency with the largest market capitalization even touched US$ 30,000/BTC on May 19.
Some analysts see the level of US $ 30,000/BTC to be the bottom or the lowest point of the decline in the price of bitcoin. However, some analysts also see bitcoin’s downward trend is still not over. This means that investors who buy bitcoin prices when the price is at its peak are at risk of experiencing greater losses.
“I believe bitcoin will continue to decline further from its current position,” analysts from BiotechValley wrote in a note quoted as saying Cointelegraph, Wednesday (26/5/2021).
“I think bitcoin will slowly go down and form dead cat bounce,” he added.
Dead cat bounce is a technical analysis that shows a continuing downward trend. An asset is said to be experiencing a dead cat bounce when its price plummets, then slowly reverses up as if it were about to rise. But after that it went back down again.
The analyst estimates the price of bitcoin is at risk of falling to US $ 15,000-US $ 16,000/BTC.
Bitcoin CS began to decline 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 is US President Joe Biden who enforces tax reporting for crypto transactions above a certain value.
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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