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Bitcoin price slide: cryptocurrency threatens to fall below $ 30,000, despite Elon Musk

2021-05-23T18:00:06.833Z


The cryptocurrency Bitcoin is only trading just above the $ 30,000 mark on Sunday - despite Elon Musk's attempt to support the price via tweet. Bitcoin has more than halved since the record high.


Enlarge image

Bitcoin under pressure:

Since peaking at around $ 65,000 in mid-April, Bitcoin has lost around 50 percent

Photo: PHILIPPE LOPEZ / AFP

Renewed sales: The cryptocurrency Bitcoin has abandoned its recovery attempt and is now threatening to fall below the $ 30,000 mark. Only on Friday did the Bitcoin price break through the psychologically important round mark of 40,000 US dollars. Although Bitcoin investor and Tesla boss Elon Musk tried again on Saturday to support the cryptocurrency via tweet, the interim recovery was short-lived: after Bitcoin temporarily recovered to US $ 39,000 on Saturday, it followed on Sunday another sale. Most recently, Bitcoin was only listed at $ 32,500 on the Bitstamp trading platform.

Since the fluctuations are particularly high on weekends, there is now a threat of falling below the $ 30,000 mark. Bitcoin also threatens the first monthly loss in more than 2 years in May. In mid-April, just in time for the IPO of the Coinbase crypto exchange, Bitcoin had reached a record high of around 65,000 US dollars. Since then, Bitcoin has lost around half of its market value within four weeks.

News from China on Friday caused renewed pressure to sell: Beijing would shut down and strictly control the extent of Bitcoin mining and all trading activities with the cryptocurrency, the Financial Stability Committee announced on Friday. It is about averting risks in the financial market. One will react to illegal, unauthorized mining activities with strict measures, it said from the committee, which is led by China's Deputy Prime Minister Liu He.

Liu He said the government will crack down on the virtual currency's mining and trading activities.

Illegal securities transactions would be prevented and the stability of the stock, bond and currency markets would be maintained.

Liu is the highest-ranking Chinese official publicly ordering crackdown on Bitcoin, and it is the first time the State Council has explicitly targeted the crypto sector.

China's state broadcaster CCTV warned of "systemic risks" in cryptocurrency trading in a comment on its website on Friday.

Almost 10,000 digital values ​​on the market

The past week was a memorable one for Bitcoin and the remaining 9,900 digital values.

On Wednesday, the prices of many cryptocurrencies crashed more than seldom before.

Hundreds of billions of dollars in market capitalization were wiped out in a matter of hours.

The record high, reached in mid-April when the cryptocurrency Coinbase went public at just under $ 65,000, is out of reach.

Ether was last listed at around $ 2,700.

The record high, also reached just a few weeks ago, is more than $ 4,000.

China, tax plans and Elon Musk are moving the market

It is primarily three parties that have recently moved the crypto market: Elon Musk, China and the US government. Initially, Tesla boss, multibillionaire and crypto advocate Musk had the market excited. First he revised the Bitcoin-friendly course of the electric car manufacturer Tesla, then he seemed to indicate that it could part with its Bitcoin holdings. Musk quickly denied the latter, but the damage was done.

The third negative factor besides Beijing and the Musk tweets came from the USA.

On Thursday evening, the US Treasury Department announced that it was considering reporting crypto transactions in excess of $ 10,000 in order to ensure tax compliance.

If the project is implemented, it would be a blow to the anonymity of transactions in their favorite assets, which is so valued by crypto fans.

NFT fans stay calm

The recent collapse of Bitcoin, Ethereum & Co brought owners of so-called NFTs heavy book losses. The fans of these "non-fungible tokens", a kind of proof of ownership for digital objects, will not be disturbed by it. They hold on to their collectibles. "People who have spent thousands on NFTs are not going to sell them at a 50 percent discount," says one NFT collector by the pseudonym "Pranksy". "Many see it as an investment." This is comparable to traditional art, the prices of which are independent of developments on Wall Street. With NFTs, digital objects such as pictures, videos or even properties in virtual worlds can be marked as originals and turned into collectibles.For example, fans can secure video clips of spectacular actions by their sports idols. This technology, which is based on the blockchain known from cryptocurrencies, opens up new possibilities for artists to market their pictures, videos or pieces of music.

More than $ 1 trillion in crypto assets burned

With the growing losses in times of rising inflation, Bitcoin also threatens to lose its reputation as a possible protection against inflation.

The market value of the currently around 9,900 digital stocks had slumped to $ 1.35 trillion on Wednesday.

A week ago, a record $ 2.5 trillion had been set.

In other words, more than a trillion dollars of worth have been burned in just a week.

In March, US tax plans had already put the cryptocurrency under severe pressure. US President

Joe Biden

(78) plans to roughly double capital gains taxes. Stockbrokers fear that this will reduce the attractiveness of cryptocurrencies as an investment. In Germany, the taxation of crypto profits is legally controversial. The Federal Ministry of Finance announced to the manager magazin that it would soon be clarified to the tax offices.

The latest tweets from Tesla boss

Elon Musk

(49) also contributed to the slide in Bitcoin and Co.

Tesla bought Bitcoin for $ 1.5 billion in January.

In the most recent fiscal quarter, the company had sold its previously purchased Bitcoins for almost $ 300 million and, according to its own statements, earned around $ 100 million.

Most recently, the Tesla boss fueled rumors that the company had sold Bitcoin again.

The company had previously announced that Tesla would suspend trading in Bitcoin and that customers could no longer pay for their cars with Bitcoin.

This was justified with the energy consumption when mining Bitcoin.

la / DPA

Source: spiegel

All news articles on 2021-05-23

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