Sino-Singapore Jingwei client reported on May 19 that at noon Beijing time that day, the price of Bitcoin fell below the US$40,000/coin mark, falling by more than 9% during the day. Other virtual currencies also continued to fall, with Ethereum falling below $2,890 per coin, down 14.52% on the day. Dogecoin fell to US$0.4 per coin, and the intraday decline expanded to 20%.
Source: Bitcoin.com
Is the sudden rise and fall all due to Musk?
In the past month, Bitcoin has gone out of the "jumping up and down" market, and the Bitcoin market during the year is also inseparable from Musk.
Source: Bitcoin.com
In January 2021, after Musk changed his personal social media profile to "Bitcoin", Bitcoin rose by nearly 20% in a single day. On February 8, after Tesla’s purchase of Bitcoin documents was made public, Bitcoin rose by as much as 18.8% that day, exceeding US$46,000 per coin. On March 24, Musk announced on social media that Tesla could be purchased with Bitcoin, and then Bitcoin experienced a surge. On April 14, Bitcoin hit a record high of $64,800 per coin, and then began a downward trend. Perhaps because it fell too much, Musk announced on Twitter on May 13 that Tesla would suspend accepting Bitcoin as a payment method, and Bitcoin immediately fell wildly. On May 17, Musk hinted on social media that Tesla may have sold its remaining Bitcoin holdings, causing Bitcoin to plummet by more than 10%. That morning, Musk issued a statement clarifying that Tesla did not sell any Bitcoin. As soon as the news came out, Bitcoin rose in the short term.
Associations join forces to curb virtual currency risks, and some places have issued "mining" regulatory announcements
On the 18th, the China Internet Finance Association, China Banking Association, and China Payment and Clearing Association jointly issued an announcement on matters related to virtual currency transactions. The announcement emphasized that carrying out related transaction activities such as the exchange of legal currency and virtual currency and between virtual currencies, serving as a central counterparty to buy and sell virtual currencies, providing information intermediaries and pricing services for virtual currency transactions, token issuance financing, and virtual currency derivatives transactions, violates relevant laws and regulations, and is suspected of illegal fund-raising, illegal issuance of securities, illegal sales of tokens and other criminal activities.
On the same day, the Resource Conservation and Environmental Protection Division of the Inner Mongolia Development and Reform Commission issued the "Announcement on Accepting Letters and Reports on Problems with Virtual Currency Mining Enterprises." The announcement pointed out that the Office of the Autonomous Region's Energy Consumption Dual Control Emergency Command has established a virtual currency "mining" enterprise reporting platform to comprehensively clean up and shut down virtual currency "mining" projects, and improve the reporting channels for virtual currency "mining" enterprise problems.
(Original title: "Bitcoin fell below the $40,000 mark, what else is Musk going to say?")
