The causes of the collapse of Bitcoin and the rest of the cryptocurrencies

causes of the collapse of Bitcoin Cryptocurrencies

The electronic currency collapses 30% due to warning from China and comments from Elon Musk on the American program Saturday Night Live.

The bitcoin accelerated its fall on Wednesday, and at one point lost 30% although regained some strength – then after a warning from several Chinese banking federations on cryptocurrencies and negative statements by American entrepreneur Elon Musk on Saturday Night Live, the program America’s largest audience.

The main cryptocurrency reached $ 30,016.83, less than half that of a month ago, although it later recovered some of its value and rose to $ 33,710, with a 23% drop on the day. Despite this, this new virtual currency, which has generated a huge speculative wave, remains at very high levels compared to the beginning of the year.

China dug into the wound by stating that virtual currencies should not and cannot be used in the market because they are not real currencies,” said Fawad Razaqzada, an analyst at online forex broker ThinkMarkets.

Cryptocurrencies “are not true currencies,” several benchmark Chinese banking federations considered Wednesday, warning of the danger of “speculation” in a country that is preparing its own digital currency. China was for a time one of the strongholds of bitcoin, the most widespread virtual currency.

For his part, Musk, the third richest man in the world and manufacturer of electric cars Tesla and founder of Paypal, decided to suspend the payment of his vehicles with bitcoins in mid-Maydue to concerns about the environmental and energy impact. What had been possible for a few weeks.