Bitcoin is the leading cryptocurrency in the marketplace for a decade. The digitalized coinage was invented in 2008 and authorized in the market in 2009. Bitcoin has rendered phenomenal growth in the year; moreover, the return of investment has been 300% since the last fall. Bitcoin blazed the trail of 2021 by a price of $20,000. The cost of bitcoin has boosted the tweets of Elon musk; the tweet stated that tesla motors had invested 1.4 billion dollars in bitcoin. Later the progression was correspondingly followed in March; Elon Musk tweeted that tesla motors will now accept bitcoin as a payment method.
Crypto enthusiasts are aware that the crypto market crash on the 19th of May. The prominent reason behind the crypto crash was China amplifying the crypto crackdown. The crackdown is equipped with ample aspects. Below mentioned is everything you need to know about the recent crypto crash lead by the crackdown; let’s jump straight to the updates.
Crackdown in China
Cryptocurrency has evolved into a mainstream market subject at the instance. Moreover, China is the most significant contributor to the global blockchain network. The crackdown of China in terms of cryptocurrency has led to a blood bath of bitcoin—the price of bitcoin, rival currency Ethereum, and fellow altcoins in the market. The value of bitcoin was plunged by 30%, whereas the cost of Ethereum was declined by 45%. There are platforms like YuanPay Group App which can assist you in getting fruitful outcomes in the bitcoin journey.
You might be wondering if China is the most significant contributor in the global mining chain, why the country is intensifying the crackdown. Conferring the statement of higher authorities, the chin is banning any progression related to bitcoin and another cryptocurrency to preserve the financial system from budding risks associated with the crypto industry. The crackdown includes halting bitcoin and crypto mining, holding cryptocurrency as an asset, trading cryptocurrency, and many more.
The core notion of the crypto crackdown is to ban any financial institution rendering crypto services. Moreover, the country has announced to prohibit accepting bitcoin as a payment method. Bitcoin acquired the limelight in 2014; the same year, China announced to ban any progression associated with bitcoin and any cryptocurrency. However, the ban was lifted subsequent a few weeks.
Is China Crackdown Cryptocurrency the Only Description for Market Crash?
China announced the crypto crackdown on the 18th of May, and the market crashed on the 19th of May, leading to the carnage in cryptocurrencies. Bitcoin lovers are aware that bitcoin achieved the milestone of $65000 in the midst of April, to be précised on the 13th of April; however, the trading and investment progression subjected with bitcoin transformed into an ultimate choppy process. The prominent reason behind the fact is bitcoin was stuck on an average price for two weeks, so the China crackdown was not the mere reason for the crypto crash.
In the instance bitcoin was healing itself from the average progression, the fierce bulletin arrived from tesla motors, that the organization will no longer accept bitcoin as a payment method. The groundbreaking tweet of Elon musk on passing bitcoin as a payment method shocked the mainstream investors, as the price of bitcoin was towered by Elon musk when he tweeted that tesla motors will accept bitcoin as a payment method.
The tweet basically addressed the energy consumption of bitcoin mining progression, the annualized energy consumed by the global bitcoin mining chain is 114TWH. However, Elon musk clarified that tesla motors did not actually sell any of the bitcoin units, and the organization will accept bitcoin as a payment method as soon as the environmental aspect heal itself, despite all these facts and statement the value of bitcoin declined by 19% subsequent to the tweet.
China’s latest move of crackdown rendered no time to bitcoin for the restoration process, and bitcoin instantly fell on the ground after the announcement. However, the cryptocurrency was restored on the 20th of May by 19%, but it is still ultimately far from the highest peak and even the average price of bitcoin, which was $57000.
These are some of the facts regarding the bitcoin blood bath lead by the China intensifying crypto crash.