Bitcoin fell below $ 30,000 for the first time in five months!

Photo Credits : Aleksi Räisä | Unsplash

The value of Bitcoin fell below $ 30,000 today, for the first time since the end of January, and it is the first cryptocurrency to feel the consequences of Chinese measures to regulate that decentralized market.

At around 14.50 Central European Time, Bitcoin was exchanged for 29,590 dollars, which is a drop of 9.25 percent. That very volatile cryptocurrency is still worth 2.2 percent more than at the beginning of the year, but its value fell by 54 percent compared to its historical maximum reached in mid-April. At the time, Bitcoin was worth $ 64,870.

Concerns about the tightening of Chinese government measures and fears that the acceptance of Bitcoin and other cryptocurrencies will be delayed due to their impact on the environment are putting pressure on markets,” said one analyst.

The Chinese government is running an active campaign to curb the Bitcoin mining industry, as the market calls computer transactions with cryptocurrencies.

According to the former producers of cryptocurrencies, the energy suppliers in the Chinese province of Sichuan were ordered to stop supplying electricity to that company for a while.

Since the end of 2020, Bitcoin has increasingly attracted the interests of institutional investors, from banks on Wall Street to industrial groups such as electric car maker Tesla.

In addition, some individual investors saw cryptocurrencies as a good way to place part of their savings accumulated during the pandemic.

As a result, the cryptocurrency market, where Bitcoin is still by far the largest, grew until it reached almost $ 2.5 trillion in mid-May.

However, since then, in addition to the increasingly strong Chinese position, Bitcoin has been criticized for its high use of electricity.

Multibillionaire Elon Musk, who usually praises cryptocurrencies and who has invested part of Tesla Group’s assets in Bitcoin, announced that his electric vehicles will no longer be able to be bought via cryptocurrencies until the industry turns to renewable energy sources.

By: Amber V. – Gossip Whispers