If you are interested in cryptocurrencies, you would surely have been shocked by seeing the recent situation in the crypto world. All the digital currencies are getting dropped starting from the bitcoins, which have fallen almost 30 % in the last few days. The tremendous fall in the value of bitcoins occurred when the Banking Association of China has warned its member banks to be attentive to the risk that can occur due to the use of digital currencies. A couple of days ago, Elon Musk tweet, and then this statement by China disturbed the entire market. The worst part is that not only there is a decline in the value of bitcoin, but other cryptocurrencies like Dogecoin and Ethereum are also suffering due to this. You can access more about bitcoins through the Official website
How much loss has been faced by the bitcoins?
The reports suggest that Bitcoin has faced a loss of almost $70 billion on 19th May, which is a really very huge amount. Now people are worried about whether to invest in dogecoins and Ethereum because they have a question that falls down faced by these both digital currencies are due to the bloodbath of bitcoin, or there is another cause of what is being suffered by Ethereum and Dogecoin. There is no doubt in the fact that a sudden and huge fall in the value of bitcoins has impacted other cryptocurrencies because bitcoin is recognized as the king of the crypto market.
There was a regular decline in the value of bitcoins being noticed from 13th April, which has been estimated at 38%. A couple of days ago, the value of bitcoins was as high as $64,800, and everyone was happy to see that it will soon cross the mark of $100,000, which will be a great achievement for bitcoins. The warning mentioned by China was just a little thing as the bitcoin mainly faced the burst in value when Tesla’s Elon Musk announced about not accepting the bitcoins from people who want to buy a Tesla car.
This is because bitcoin transactions utilize a lot of energy and it is leading to happen to the environment. The other cause can be that the more strict regulation for cryptocurrency owners has exerted a lot of pressure on the bitcoin can have declined in a very short time. The good thing is that the price of bitcoin is still high by almost 300% compared to last year, but still, investors are facing a loss due to such a fall.
Everything was going normal Until the statement by China’s banking association was revealed among the users. This was really a matter of concern for banking partners offering this service because they could refrain and not provide any operations to their customers. This warning also gave reason to the people to think whether it is good to invest in other digital currencies like Dogecoins or Ethereum or wait for the moment when again the bitcoin price will recover.
After the statement, there was an immediate fall of 7 percent in the value of bitcoins, and all other digital currencies like Dogecoins and Ethereum also started declining. The average fall between 7% to 22% was observed in the very digital currency available on the exchange platform, hinting at something bad in the crypto world. It is not common for bitcoin to go through such a change in thousands within a couple of moments. People who have invested a huge have lost almost $20,000 on each and every bitcoins.
Who is the credit taker of this decline?
Obviously, Elon Musk has a main role in affecting the value of bitcoins along with other digital currencies available on the internet. He is the only person who has invested almost $1.5 billion in bitcoins a few months ago. He actually mentioned the negative statement about bitcoins and some promotional words about Dogecoin, which resulted in Spike in its value. The researchers said that announcement made by Elon Musk has resulted in the biggest pullback yet in the history of bitcoins. Bitcoin is a trendsetter of digital currency, and its condition has a direct impact on most successful cryptocurrencies.