Cryptocurrencies are dropping dramatically. This is mainly due to the collapse of Bitcoin. And its capitalization on Wednesday evening was $ 723.12 billion. The sharp cuts are fully reflected in the market, and on May 19, 2021, it was already hailed as “Black Wednesday”.
BItcoin It fell to the level 30 thousand dollars. The downtrend was already visible in the second week of May, thereafter Elon Musk This has been reported Tesla will not accept Long Payments in this cryptocurrency For your cars.
It caused massive declines Panic in the financial markets. Bitcoin has actually depreciated in about a week 25 thousand dollars.
“Black Wednesday” in the cryptocurrency market
In mid-April, we wrote about the record-high Bitcoin valuation. Then I was linked to Coinbase debuts cryptocurrency exchange on Nasdaq. So what has changed in such a short time? Big drops started tweeting by Elona Musca |. When the head of Tesla announced in mid-May that the company would not accept payments for cars in bitcoin, Cryptocurrency rate collapsed.
The next blow to the Bitcoin position was the decision of the Chinese authorities to issue it Banning the provision of services related to cryptocurrency transactions. It was targeting financial institutions and payment companies. Then investors decided that the Chinese central bank was killing cryptocurrencies, and bitcoin dipped below 40,000 for the first time since February. Countries. For the symbol.
How was this reflected in the financial situation in the market? You can actually see specific effects. In April, investors invested in Bitcoin 1.2 billion dollars. However, since the middle of this month, it has already disappeared from the market 500 ml dole.
Bitcoin crashes. Cryptocurrency decline
The downtrend in Bitcoin is also affecting other cryptocurrencies. Significantly loses, among other things, Ethereum, Dogecoin or Litecoin.
Besides China, there are other countries that deal with bitcoin remotely. Also Turkey and India have imposed a total or partial ban on owning or using cryptocurrencies.