On June 22, 2021, the price of bitcoin fell below the $ 30,000 mark. According to theAFP, at 2:30 p.m. it was precisely 29 854 euros, following a 8.31% decrease. This is the biggest drop in 5 months. Two months earlier, in April, it had yet reached a record value of $ 64,000. During this time, its value was therefore halved. And just in the month of June, the price of the cryptocurrency fell by a quarter.
The price of Bitcoin abused by Chinese decisions
Without taking into account the volatility of bitcoin, this situation does not come as a surprise. In recent days, cryptocurrency news has been disrupted by chinese announcements. On June 21, the People’s Bank of China (PBOC) banned cryptocurrency transactions. The actors of the Chinese financial system therefore had to sell their assets in cryptocurrencies, including those in bitcoins. As is often the case, the explosion of supply leads to a decrease in price. This decision by the PBOC comes following the closure of 26 mining farms. These stops were demanded on June 18 and applied from June 20.
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Beijing decisions aside, the past few months have not been the best for bitcoin. In March 2021, Tesla accepted it as a payment method. Then for reasons of ecological conscience, or speculative according to some, Elon Musk canceled the decision. The businessman then discovered that the mining of cryptocurrency polluted.
There was still a recent ray of sunshine in the news of bitcoin with its recognition as legal tender in El Salvador. Nevertheless, it could be that is only a thinning. The Central American country requested the support of the World Bank for this project and the international institution refused. The International Monetary Fund (IMF) has also spoken out on this official recognition of cryptocurrency. The opinion delivered is also mixed for economic, financial and legal reasons.
Despite this dizzying drop, the CEO of the investment bank Galaxy Digital Mike Novogratz remain confident in the future of bitcoin. “Look, I’m less happy than when it was $ 60,000, but I’m not nervous”, supports to CNBC Mike Novogratz.