Bitcoin experienced a rough day on 19th May, Wednesday. This is mainly due to the reason that the leading cryptocurrency had a massive drop of approximately 30%.
Bitcoin reportedly dropped to the $30,201 low during the afternoon yesterday. Experts believe that this plunge took place after the Banking Association of China issued warnings regarding the risks in cryptocurrency currencies.
Unexpected Journey Of Bitcoin
Bitcoin had successfully managed to hit the level of $40,000 during the early trading hours on 20th May, Thursday. On the other hand, it has been reported that Bitcoin had dropped by 0.76% and traded at a $39,792 level.
Although, BTC declined to a low of $30,066 as of Wednesday. It is important to note that last month BTC was at a $64,829 high.
Coinbase has recently emerged as the biggest crypto exchange that is publicly traded. Nonetheless, Coinbase had also been knocked offline for a short span of time because of the spike. Several other crypto-based exchange-traded funds also faced some pressure.
All these problems for the cryptocurrency sector started soon after the Chinese Banking Association gave a warning against the cryptocurrency market because of the risks involved. BTC lost almost $70 billion based on market value while the drop was nearly 10% within 24 hours.
In addition, Tesla also made an announcement last week that contradicted their previous announcement and adversely affected cryptocurrencies. They announced they will not be accepting the digital currency for their cars as a mode of payment. They cited the reason for possible environmental harm due to BTC mining.
The activities of Elon Musk, CEO of Tesla and SpaceX, have a huge impact on the cryptocurrency market. Hence, this announcement showed its influence as well.
