Bitcoin
BTC$16 214.11

-2.13%

Ethereum
ETH$1 173.09

-3.68%

Tether
USDT$0.999652

0.01%

Binance Coin
BNB$295.36

-5.89%

USD Coin
USDC$1.000133

0%

Binance USD
BUSD$1.000432

0.05%

Bitcoin: Two reasons for the plunge to $30000


20 May 2021

#Bitcoin

The value of Bitcoin fell sharply yesterday to just above $30,000 at one point, losing more than half since it reached an all-time high of nearly $65,000 in mid-April. What Is Happening to Bitcoin? According to economists at Deutsche Bank, this sharp drop mostly occurred for two reasons. Last week, Elon Musk tweeted that Tesla would not accept Bitcoin as a means of payment, and on Tuesday, the People’s Bank of China (PBoC) reiterated that digital tokens cannot be used as a form of payment. What’s more, as cryptocurrencies begin to seriously compete with regular currencies and fiat currencies, regulators and policymakers will crack down.

More governments will contain cryptocurrencies

When Elon Musk announced that Tesla would stop taking Bitcoin as payment due to concerns about the extraordinary amounts of energy needed to process transactions, he wasn’t saying anything new. Energy use increases proportionally with the cryptocurrency’s market valuation. As such, numerous alarms have been warning us about the environmental impact caused by cryptocurrency energy consumption. Some have said this impact could be ameliorated by using capital in the cryptocurrency market to develop green technological advancements. This is called a ‘positive externality’; that is, technological innovation in the financial sector would drive innovation in the energy sector.

The PBoC stated on Tuesday that a virtual currency ‘is not a real currency’ and ‘should not and cannot be used as currency in the market.’ But again, there is nothing new here. It is clear that China’s targeted regulatory actions are designed to support the launch its digital currency (CBDC). The PBoC has not yet revealed a specific timeline for its official Digital Currency/Electronic Payment (DC/EP) rollout, but the government aims to have its CBDC ready for widespread use in time for the Beijing Winter Olympic Games in February 2022.

Following a comprehensive market consultation in early 2020, the EU proposed a single regulation for all crypto-assets including cryptocurrencies that were not already governed by existing regulations (e.g. MiFIDII). The new regulation, which is called the Markets in Crypto-Assets Regulation (MiCAR), is expected to take effect by the end of this year or early next. The US government has taken numerous regulatory actions since early 2019, such as the Framework for Digital Assets. The new Biden administration is expected to establish a collaborative and unified strategy to adjust the existing comprehensive regulatory framework and establish new regulations as needed to provide legal certainty.


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Top Cryptocurrencies with Price Predictions

# Crypto Prediction Accuracy CVIX Price 24h 7d Market Cap 7d price change
1 Bitcoin (BTC) BTC Bitcoin predictions 59.6% 88 $16 214.11 -2.13% 1.16% $311 614 263 633 BTC 7 days price change
2 Ethereum (ETH) ETH Ethereum predictions 62.4% 86 $1 173.09 -3.68% 4.41% $143 555 103 439 ETH 7 days price change
3 Tether (USDT) USDT Tether predictions 95.6% 1 $0.999652 0.01% 0.09% $65 339 950 174 USDT 7 days price change
4 Binance Coin (BNB) BNB Binance Coin predictions 65.2% 66 $295.36 -5.89% 14.59% $47 249 279 709 BNB 7 days price change
5 USD Coin (USDC) USDC USD Coin predictions 94.4% 1 $1.000133 0% 0% $44 306 782 850 USDC 7 days price change
6 Binance USD (BUSD) BUSD Binance USD predictions 92% 1 $1.000432 0.05% -0.07% $22 411 208 216 BUSD 7 days price change
7 XRP (XRP) XRP XRP predictions 66.4% 75 $0.383127 -4.51% 8.98% $19 270 803 660 XRP 7 days price change
8 Dogecoin (DOGE) DOGE Dogecoin predictions 56% 88 $0.095272 -2.20% 25.28% $12 639 864 763 DOGE 7 days price change
9 Cardano (ADA) ADA Cardano predictions 59.2% 81 $0.306279 -3.57% 0.59% $10 546 382 458 ADA 7 days price change
10 Lido stETH (STETH) STETH Lido stETH predictions 94.4% 1 $2 941.39 -0.40% -3.32% $10 258 752 564 STETH 7 days price change
11 Polygon (MATIC) MATIC Polygon predictions 68.8% 68 $0.822110 -4.08% 2.56% $7 180 572 486 MATIC 7 days price change
12 Polkadot (DOT) DOT Polkadot predictions 63.6% 72 $5.17 -4.71% -0.87% $5 890 126 421 DOT 7 days price change
13 Dai (DAI) DAI Dai predictions 95.2% 1 $1.000012 0.01% -0.02% $5 658 040 659 DAI 7 days price change
14 Wrapped TRON (WTRX) WTRX Wrapped TRON predictions 64% 79 $0.052681 -0.98% 5.20% $5 356 385 320 WTRX 7 days price change
15 Litecoin (LTC) LTC Litecoin predictions 66% 70 $71.96 -6.30% 18.17% $5 160 456 948 LTC 7 days price change

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