The price of Bitcoin has again fallen as it dropped to a low of $32,500 on June 21st. The first time it had been this low since early June this year. It comes as no surprise as concerns came about when the Chinese authorities ordered the Sichuan Province to halt the Bitcoin mining from June 18th. This stoppage is said to be due to the amount of energy used for mining and was a significant reason why the government decided to stop it.
The news comes in addition to the number of tweets by CEO of Tesla Elon Musk, who was recently going back and forth debating the future of Bitcoin with the Kraken cryptocurrency exchange CEO, Jesse Powell. In an interview last weekend, Powell told Bloomberg that the price of Bitcoin could reach an all-time high by the end of 2021. Musk, however, disagreed with that statement and questioned if what Powell was saying was accurate and if he had data to back up his claims.
The influence Musk has on both buyers and sellers of Bitcoin was enough to cause Bitcoin to decrease by 4.2% due to this response to Powell. He also posted more comments on Twitter, saying that he is also concerned with Bitcoin’s use of fossil fuels damaging the environment and is still working on creating a greener cryptocurrency that is more environmentally friendly.
Unfortunately, with all the announcements and discussions surrounding Bitcoin, the price is still going down. Due to the Chinese authorities stopping Bitcoin mining services, it will severely impact their mining abilities by over 90%. China was responsible for around 65% of the world’s Bitcoin mining facilities, so this causes a major disruption to the market. The fall means that there is less confidence from crypto investors and traders worldwide. Cryptocurrency as a whole is known to be highly volatile, but the discussions for plans to use cryptos as a legitimate currency is proving unstable and detrimental for businesses.
$200 billion erased from markets
In total, nearly $200 billion was erased from the market since last weekend, adding to the mountain of losses cryptocurrencies have already accumulated in the last few months. There are fears that more losses could be on the way, but the price of Bitcoin has jumped higher than ever before if you’re looking at a year-by-year basis.
The crypto market crash has affected many cryptocurrencies after record high numbers were hit earlier this year, including Bitcoin reaching over $63,000 in April. Other digital currencies also suffered a loss like the second most popular crypto, Ethereum, and Cardano and Dogecoin, all dropping by margins similar to Bitcoin. As Bitcoin tries to all its efforts to rise again, Bitcoin traders struggle to decide whether to hold onto their Bitcoin, but more because the price is relatively low or sell it while they can to avoid further losses.