Bitcoin Tumble Continues; Nears $30,000

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Bitcoin slide continues as it nears $30,000 amid China’s crackdown on cryptocurrency mining. The value of crypto dipped 3.65 percent to $32,908 on Tuesday Morning.

In accordance with CoinMarketCap Index, Bitcoin has suffered a dip of 18.62 percent over seven days. This has triggered the fear of investors who invest their wholesome money in Bitcoin. But still, the marketers predict that this situation will change soon and that bitcoin will regain its position sooner. This effect has also been seen in the value of Ethereum which fell 5.59 percent to $1,970.25, whereas Ethereum dropped 0.10 percent.

This bitcoin tumble started after the People’s Bank of China summoned officers from its rated banks; in addition, Alipay reiterate its ban on cryptocurrency providers.

As evidence of the downfall of cryptocurrencies, bitcoins and Ethereum lost its value suddenly, after China’s crackdown on cryptocurrency mining. Pankaj Balani, the CEO of Delta Exchange stated that he believes that Bitcoin will rebound to $40,000 in the coming weeks.

As the digital coin has reached a peak of $65,000 in April, many investors have invested in Bitcoins and this Bitcoin tumble has created a big fear in the investors market.

Not only bitcoin, but other cryptocurrencies also plunged on Wednesday. According to Coin Metrics, the digital currency that powers the Ethereum blockchain was down more than 22% at $2,620.97. Dodge Coin which has been talked about by Elon Musk fell 25% less than 36 cents. These two-faced a serious downfall in their value. To be noted, both had a remarkable percent of profits in the earlier session.

Few investors also stated that cryptocurrency exchange Coinbase was temporarily down for some users as the coins plunged on later Monday. Ruud Feltkamp, the Chief Executive Officer at Crypto Trading Bot Cryptohopper stated, “People still react strongly to actions from China that create uncertainty; so this is likely to reflect negatively on the bitcoin price.”

A few months before, Elon Musk has announced that for their Telsa Vehicle, they are going to accept cryptos as payment. But soon after China’s crackdown on Crypto Mining; Elon Musk the Electric Car Maker had suspended vehicle purchases using crypto coins. This comment by musk caused over $300 billion to wiped off the entire cryptocurrency market that day.

And also, earlier this week, Telsa’s CEO stated that the company has sold its bitcoin holdings; as it created a huge hype in the market, later they clarified that they didn’t sell any bitcoins.

Then on Tuesday, the three Chinese banks and payment industry bodies announced a statement; that warns the financial institutions not to conduct virtual currency-related business; including trading or exchanging fiat currency for cryptocurrency.

Chinese traders are more accounted for a huge share of the bitcoin market. But after the announcement of Crypto crackdown, their influence reduced considerably.

Economists predict that Bitcoin’s tumble is only temporary and it will be still up over 30% within 3 months.

Stay tuned with us to know the trending news & updates in the crypto industry!