Sunday 23 May 2021
Courses give way
Bitcoin turbulence continues
In mid-April, a Bitcoin cost just under $ 65,000. Then it went steeply downhill. Despite the heavy losses, the digital currency still costs almost four times as much as a year ago. But the threat level is increasing.
The cryptocurrencies have come under pressure again. After the rates of the digital currencies had stabilized somewhat on Saturday after the exchange rate crash in the days before, they recently fell again. Bitcoin, the best-known and largest digital currency in terms of market share, cost around $ 34,000 on the Bitstamp trading platform, almost nine percent less than the day before. Other digital currencies such as ether also sagged.
In the past week, Bitcoin briefly fell to $ 30,000 on Wednesday, but was able to recover somewhat in the days after. With a level of around $ 37,000 on Friday evening, Bitcoin lost around a quarter of its value over the course of the week. Since the record high of just under $ 65,000 in mid-April, it has fallen by almost half.
Despite the heavy losses in recent weeks, Bitcoin still costs almost four times as much as a year ago. The massive fluctuations show the dilemma of the market for digital currencies – it promises high profits on the one hand, but immensely high risks.
China wants to crack down on the production of cryptocurrencies
Experts cited news from China as an important reason for the recent price slide. The government reiterated an earlier announcement to crack down on cryptocurrency manufacturing. The generation of digital currencies is also called mining and consumes enormous amounts of electricity to produce them. Previously, Tesla boss and crypto advocate Elon Musk had already caused the market for cryptocurrencies to be agitated several times. Musk seemed to be suggesting that the electric car manufacturer Tesla could sell its Bitcoin holdings. Musk quickly denied it, but the price movements in Bitcoin were enormous.
Another stress factor came from the USA last week. On Thursday evening, the US Treasury Department announced that it was considering reporting crypto transactions of more than $ 10,000 in order to ensure tax compliance. If the project is implemented, it would be a blow to the anonymity of transactions, which is so valued by crypto fans.
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