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Bitcoin: cryptocurrency is stabilizing again after the price slide

2021-05-25T03:52:27.357Z


After the price slide on the weekend, Bitcoin is stabilizing again - albeit far from its record high. China's massive crackdown on the crypto industry is now having an impact.


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Bitcoin under pressure:

Since the high in mid-April at around 65,000 US dollars, Bitcoin has lost almost 45 percent

Photo: DADO RUVIC / REUTERS

After the price slump on the weekend, the cryptocurrency Bitcoin is recovering.

The most important and largest cyber currency rose on Monday by 6 percent to just under 38,000 US dollars.

The second largest cryptocurrency, Ether, rose by more than 10 percent to $ 2,323.

On Friday, the Bitcoin price had broken the psychologically important round mark of 40,000 US dollars. News from China 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

.

China's massive crackdown on the cryptocurrency industry already showed its effect on Monday: Several companies in the industry announced that they would cease business in the People's Republic. These include the companies Huobi Mall, Hashcow and BTC.Top. These are companies that earn their money with the energy-intensive so-called "mining" of crypto currencies such as Bitcoin. They provide computer capacity for the encryption of transactions and are paid in the respective currency.

It is estimated that up to 70 percent of the global supply of cryptocurrencies comes from miners in China.

This requires immense energy production.

According to calculations by researchers, the crypto miners in the People's Republic could use more electricity in 2024 than all of Italy in 2016 - provided that nothing changes in the regulation.

But the high energy requirements for mining run counter to the Chinese leadership's climate goals.

Tesla boss Musk ensures short-term stabilization

Bitcoin stabilized again on Saturday after Bitcoin investor and Tesla boss Elon Musk tried again to support the cryptocurrency via tweet.

But on Sunday there was another sale: The cryptocurrency fell another 13 percent to $ 32,601.

The second most important cyber currency, Ethereum, lost 17 percent on Sunday to $ 1805.

The fluctuations in crypto currencies are particularly high on the weekends.

As things stand now, Bitcoin is threatened with its first monthly loss in more than two years in May.

In mid-April, just in time for the IPO of the Coinbase crypto exchange, the cyber currency had reached a record high of around 65,000 US dollars.

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.

In addition to the measures taken by the Chinese government, Elon Musk and the US government have recently moved the crypto market.

For example, crypto advocate Musk had the market excited when he revised the Bitcoin-friendly course of the electric car maker Tesla and suggested that Tesla could divest its Bitcoin holdings.

Musk quickly denied the latter, but the damage was done.

US government is considering reporting requirements

The third negative factor came from the USA. On Thursday evening, the US Treasury Department announced that it was considering reporting crypto transactions of more than $ 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.

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.

mg, la / Reuters, dpa-afx

Source: spiegel

All news articles on 2021-05-25

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