Bitcoin and others keep losing
The Bitcoin price jumps significantly at a low level. The ether also drops again to below $ 2,000. Cardanos ADA loses almost 16 percent.
There is no reason for crypto investors to be happy on Pentecost Sunday. An improvement in the trend that was still indicated on Saturday turned into a downward trend on Sunday. Bitcoin plummeted again to almost $ 34,000, Ether hovered below 2,000 and ADA dropped to $ 1.25. The Dogecon also lost another eight percent.
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Losses of up to 19 percent
The clearest losses suffered from the Ether with around 12, ADA with around 16, the BInance Coin with a very clear 19, XRP with around 15 and Polkadot with 19 percent. The crypto market is moving towards halving its overall valuation.
Bitcoin is still a long way from its recent low. On May 19, 2021, it had fallen briefly to $ 30,000. Nevertheless, the most important coin has suffered a decline of almost half since its record high of just under $ 65,000 in mid-April 2021.
This makes it impressively clear what governments and banks have been warning about for years. Cryptocurrencies can bring interesting returns, but they also involve massive risks. If a volatility of 30 percent was previously assumed, we have now seen that even up to 50 percent are conceivable.
These are supposed to be the reasons behind the massive crash of the crypto market
Because everything has to be justified, of course, experts have identified various factors influencing the fall of digital currencies. On the one hand, you mention the affirmation of the Chinese anti-crypto stance, which was wrongly perceived by many as a new policy. China reaffirmed its intention to crack down on crypto mining, which could indeed be problematic because China is the bitcoin mine in the world.
Likewise, Tesla’s Elon Musk is said to have had a weakening influence with the announcement that he no longer wanted to accept Bitcoin as a means of payment for new vehicles due to environmental aspects. Elon Musk had quickly admitted that he wanted to continue to hold onto Bitcoin and had actually managed to stop the free fall of the crypto token.
Last but not least, the US Treasury Department announced on May 20, 2021 that it was considering a legal notification requirement for crypto transactions of more than US $ 10,000. The aim is to support tax compliance, which many governments around the world see at risk because of the supposed anonymity of the transactions.
