Bitcoin Update: What Led To The Bitcoin Crash This Week?

The last couple of days have proven to be very complicated for Bitcoin (BTC), and the crypto industry is evident of the circumstances that fell upon not only Bitcoin (BTC) but upon overall cryptocurrencies that lead to the massive crash of the crypto market. The price of almost all virtual assets fallen to lower values in the last 48 hours, and the leading asset BTC reached below $30K. But, still, the industry bore the loss and struggled to rise again within the following hours and proved itself as a reliable industry against the ongoing rumors. This article will focus on the different factors causing fear, uncertainty, and doubts (FUD) related to the recent crash in order to speculate the ongoing scenario.

As it is well acknowledged that Elon Musk has got too attached to the crypto industry that often his name seems to be attached with almost every ongoing crypto activities and the same case is with the recent crypto crash. Musk’s renowned company of electric car named Tesla, greatly pushed Bitcoin (BTC) and disclosed the ownership of Bitcoin worth $1.5 Billion in a documented form. This amazed the crypto traders, and they sought profits by trading this particular asset. Even Tesla announced publically to accept Bitcoin (BTC) as a payment method to buy Tesla cars.

But later on, Elon turned his back on it as it turned out the Bitcoin mining is causing massive consumption of fossils fuels, so Elon dropped its plan, and Tesla clarified that the firm wouldn’t accept BTC anymore that resulted in the decline of Bitcoin in the crypto market and spread fear, uncertainty, and doubt (FUD) about Bitcoin.

Secondly, China’s policies and ban over Bitcoin (BTC) and other virtual assets caused devaluation of assets that enhanced FUD that caused the decline of Bitcoin. In the last 48 hours, Bitcoin’s price plummeted significantly, reaching below $30k and adversely affected almost all cryptocurrencies. Financial authorities, including PBoC, are not willing to declare crypto assets as real currencies and extended the ban on virtual currencies as such assets cannot be used for payment and financial services.

The United States is also speculating the crypto industry analytically through a different perspective in terms of strong and legal support to the government. According to Bitcoin Magazine, Binance is under strict observation of US’ financial and government officials as the maximum amount of fund related to criminal enterprises have been transferred via Binance as compared to other exchanges and blockchain technologies, and hence the blockchain is under trial that is one of the few reasons causing FUD related to Bitcoin as in few other countries like Indonesia, South & North Korea and India is also in the chaotic situation about incorporating cryptocurrencies.

Leave a Reply

Your email address will not be published.