Bitcoin falls below $40,000 for first time in 14 weeks, wiping hundreds of billions off the crypto market.
Bitcoin fell more than 13 per cent and hit a major low of $38,585.86 at around 12:54 a.m. ET, according to CoinDesk data.
That was the lowest level since Feb. 9, the last time it dropped below $40,000.
Around $279.65 billion had been wiped off the entire value of the cryptocurrency market in 24 hours.
Bitcoin hit its all time high of $64,829.14 in mid-April, but after Elon Musk’s tweet-storm, it sent the price tumbling.
Tesla’s decision on May 12 to suspend vehicle purchases using bitcoin caused over $300 billion to be wiped off the cryptocurrency market.
Bitcoin’s smaller rivals are eroding its share of the $2 trillion digital currency market
Of the dozens snapping at its heels, most alternative coins have little use beyond financial trading, but very few investors seem bothered.
It’s led to analysts to raise a question “could bitcoin die” ?
As the rise of Shib Coin, Dogecoin and Ethereum continue at rapid speeds, and Elon Musk swings some hate for Bitcoin’s environmental impact, the number one crypto could become a memory.
Bitcoin on the rise again
Bitcoin has surged 9.8 percent to over $39,000
The digital currency has once again proved how volatile it is, following another tweet from Elon Musk.
Musk stated that Tesla would restart transactions with the cryptocurrency when mining is done with more clean energy.
The crypto, which has been volatile in recent weeks, added $3,490 to its previous close.
The bounce follows El Salvador voting to make Bitcoin legal tender.
China crypto crackdown sees over 1,100 arrested
Police in China have arrested over 1,100 people on money-laundering charges, claiming they used cryptocurrency to help them evade the law.
The arrests come as authorities in China step up their crackdown on cryptocurrency trading.
Reports say the money launderers charged their criminal clients a commission of 1.5% to 5% to convert illegal proceeds into virtual currencies via crypto exchanges.
Last month, three industry bodies banned crypto-related financial and payment services, and the State Council vowed to clamp down on Bitcoin mining and trading.
The public security ministry confirmed police had busted more than 170 criminal groups involved in using cryptocurrencies to launder money.
The money launderers charged their criminal clients a commission of 1.5% to 5% to convert illegal proceeds into virtual currencies via crypto exchanges.
China continues crackdowns
China’s State Council ordered a tough crackdown on telco fraud in October 2020.
Executives from two of the largest crypto exchanges that provide services to Chinese investors assisted police with their inquiries.
Bitcoin becomes legal tender in El Salvador
El Salvador has become the first county to adopt Bitcoin as a legal tender
Earlier El Salvador’s President Nayib Bukele sent a law to the country’s congress proposing to make Bitcoin legal tender – that was then passed.
If approval makes El Salvador the first nation in the world to give cryptocurrency this status.
Under the legislation, prices can be shown in bitcoin, tax contributions can be paid with the digital currency, and exchanges in bitcoin will not be subject to capital gains tax.
Salvadorian President Nayib Bukele announced in a video recording shown during the Bitcoin 2021 conference held in Miami that he has a strong belief in cryptocurrency.
Bukele added that the use of Bitcoin would not bring risks to users.
Its use as legal tender will go into law in 90 days
El Salvador’s dollarized economy relies heavily on money sent back from workers abroad. World Bank data showed remittances to the country made up nearly $6 billion or around a fifth of GDP in 2019, one of the highest ratios in the world.
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