JAKARTA – Cryptocurrencies have fallen very sharply in recent days. The cause is the increasingly strong negative sentiment towards Bitcoin (BTC).
The slump in the price of cryptocurrencies this time is the lowest since the beginning of 2021. A report from Coinmarketcap showed the price of Bitcoin declined by 20.84 percent, slumping sharply to touch the price of 38,804 U.S. dollars.
Negative sentiment hit Bitcoin in one week. Tesla decided to stop buying its electric cars using Bitcoin. The information was announced by Elon Musk a few days ago on his Twitter account. However, Musk insists he will not sell his Bitcoin.
Recently, China banned cryptocurrency transactions conducted by banks, crypto exchanges, and the like. Xi Jinping's government urged that cryptocurrency owners not be involved in cryptocurrency given its high volatility. In addition, it seems that China is trying to implement its digital Yuan to stem cryptocurrencies.
Three state industry bodies of Bamboo Curtain which include the China Banking Association, China National Internet Finance Association, and China Payment and Clearing Association simultaneously prohibit financial institutions and companies from providing crypto transactions.
"Recently, the price of cryptocurrencies has skyrocketed and plummeted, and speculative trading of cryptocurrencies has recovered. This seriously violates property security, disrupts the normal economic and financial order," the three industry bodies said as quoted by CNBC International on Wednesday, May 19.
However, the Chinese government does not prohibit individuals from owning cryptocurrencies. That means everyone can still have crypto money because the ban only applies to financial institutions and industries.
Earlier, the price of Bitcoin cs also crashed due to the decision of the president of the United States, Joe Biden who raised taxes by 43.4 percent of the capital gains of cryptocurrencies. However, after that the price of cryptocurrency gradually recovered.
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