Investing in cryptocurrency is not a lot of fun when the prices of popular cryptos are going down. The value of Bitcoin, one of the most popular cryptos in the world, sank below US$30,000, the lowest since January 27.
Why is Bitcoin dropping?
Many factors cause the value to go down, but one of the recent major factors is China trying to root out cryptocurrency entirely from the country. China’s capital Beijing has also doubled its efforts to remove crypto.
One of the major reasons is to gain more control over the financial system. If you’re new to the world of crypto, it’s a decentralized system of storing money where there’s no involvement of banks to the governments.
As of writing this article, Bitcoin stands at $29,782 after receiving a 9% drop in the past 24 hours.
Why China hates crypto?
An analyst at Foreign Exchange trading from Oanda told AFP, “China does not have an open capital account, and cryptocurrencies circumvent this, which is an anathema to China’s authorities.”
This is also a huge blow to the entire cryptocurrency market as China contributes mammoth power via data centers of nearly 80 percent of the global crypto trades. This is due to the access to cheap power and hardware resources that allow Chinese firms to process many transactions.
The Elon Mantra
Elon Musk, one of the most popular entrepreneurs of today, is also greatly responsible for manipulating cryptocurrency prices by his “powerful” tweets. Not to mention, he also did help Bitcoin, Dogecoin, and other cryptos rise for a period of time.
On June 4th, he tweeted a meme due to which the price of bitcoin dropped by almost 4%. Elon recently received a threat from the Anonymous group of hackers, but he, in turn, made jokes on them. Either way, a lot of Chinese individuals are reported to be selling their Bitcoins.
What do you think of this? Do you own Bitcoin or any other crypto? Let us know your thoughts and opinions in the comments section below.