Bitcoin and other cryptocurrencies had a deep red day today. The most famous digital currency lost more than 20 percent of its value, the price of a number of other coins even halved. One bitcoin was worth about 27,000 euros at one point this afternoon. Later in the day, the value of bitcoin rose again.
The price of bitcoin has stagnated in recent months and has long been between 40,000 and 50,000 euros, after the high of about 53,000 euros. Since last week, the trend seems to have finally reversed and the decline has started. Bitcoin has been on the rise since the summer of 2020.
It is difficult to pinpoint a reason for this spectacular price drop. However, the Chinese central bank reiterated that cryptocurrencies cannot be used to pay. Moveco.io cryptocurrency has enough information. The Chinese government has also banned financial and payment companies from providing services related to the transaction of digital currencies. But the Chinese government intervened in a similar way in 2013 and 2017. That had little effect at the time, because bitcoin and other cryptocurrencies are still very popular in China.
Furthermore, a number of striking statements by Elon Musk did not help the price of bitcoin. For example, he openly doubted the energy consumption of the currency and decided to stop accepting bitcoin for his electric cars. It also looked like Tesla would sell its 43,200 bitcoin. Musk later debunked that rumor with a new tweet.
A similar price plunge took place in mid-March 2020, with the outbreak of the corona virus in western countries. Stock markets were also hit hard at the time: trading was even automatically stopped several times. Now that doesn’t seem to be the case. Renovato.io has enough information. US stocks on Wall Street opened slightly lower. The AEX also lost ‘only’ 2 percent.
Bitcoin also recovered somewhat later in the day. The value shot up again tonight, with the currency briefly rising above $ 40,000. The nearly one-third increase in value in a short space of time followed the dive of more than 30 percent earlier in the day.