What Has Led to the Significant Fall In the Value of Bitcoin
We all know that the prices of bitcoin keep on fluctuating. Bitcoin is a highly volatile cryptocurrency in which the value keeps getting up and down. At some of the times, the value of bitcoin rises to a great extent that the investors gain some big profits while in some of the times the prices fall down to a considerable amount that it leads to big disappointment for the people who have invested in bitcoin. Recently you might have heard about the news that bitcoin was at its peak value in the month of April, and its value was around $65000.
There were many predictions made by the investors, traders, analysts of bitcoins that its value is going to increase more in the upcoming months and it will reach the value of $100000 if it keeps on increasing at a constant rate. But if we see the current scenario, then it is just the opposite of what people predicted. The value of bitcoin has seen a considerable fall, and you will be shocked to know that it has fallen almost 50% from its highest value in this one month only. You can get to know about the value of bitcoin and track it on The Crypto Economy
This massive decrease in the value of bitcoin has broken its own record because till now, there has not been seen this massive decline in the bitcoin value and that too in one single month. But the thing is that we cannot predict the nature of bitcoin and its value because it is a volatile currency, and its prices keep on rising and falling. You need to know that on 21st May, the price of bitcoin was $40846, and it had seen a modest increase in its value because just two days before, its value was only $30000. So, we can conclude from it that the bitcoin value is recovering, and people should not lose their hopes so soon.
China puts a ban on cryptocurrency trading!
Well, one of the most significant factors which led to the fall in the value of bitcoin was when the statement was given by the Chinese government that they are deciding to put a ban on cryptocurrency trading in their nation. This was the thing which has impacted the investor, and they suddenly started selling their bitcoins.
Unacceptance of bitcoin payments by Elon musk!
The one more thing which is also a reason for the decrease in the value of bitcoin is that Elon Musk, who is the CEO of tesla company, has announced in a tweet that from now on, the tesla company is not going to accept payments from bitcoins. You need to know that it was just a few weeks earlier the company announced that they are going to accept bitcoin payments. Moreover, he also stated that he had invested $1.5 billion in buying bitcoins.
Well, for the reason for his banning of bitcoin payments, he said that it was due to excessive use of the fossil fuels which were used for mining the bitcoins, and it had a harmful impact on the environment. There is no doubt in the fact that the mining of bitcoin and making transactions of bitcoin takes a lot of power, and it is also a bad thing for the environment.
But the fact is that his tweet has led to an immediate decrease in the value of bitcoin, which was estimated at almost 15%. This massive fall in the bitcoin value is quite disturbing for the people who have invested their precious money in bitcoin. You will be surprised to know that before the decision of Elon musk, the bitcoin value was above $58000, and after his tweet, the value of bitcoin reached $49000 on 14th May.
The bottom line!
Well, the good thing is that the prices of bitcoin have started to recover. But the one thing which can indeed be concluded from this piece of information is that the bitcoin value can straightforwardly be affected by these tweets and the various worldwide events also. Well, this loss was really huge for the investors from different parts of the world. If you have also invested your money in bitcoin, then you should not lose your hopes because the price of bitcoin has started to rise again.
