Bitcoin, the original cryptocurrency which had begun to gain traction since breaking a $20,000 psychological handle back in December 20, 2020 and spiked to a record $65,000 a month earlier, fell as much as 13 per cent on Sunday, as the world’s largest digital asset had been met with another day of incisive wounds that leaves it more than 50 per cent down from the year’s peak.
In point of fact, latest leg of downward spiral in Bitcoin’s valuation came forth amid stiffer China crackdown alongside a string of slanderous tweets from Tesla Inc. Chief Elon Musk, however, earlier in the day, Musk was quoted saying in a tweet that he would support crypto in a battle against hard currency.
Nonetheless, Musk’s remarks have barely had an impact in the day’s crypto market, as retail traders seemingly had learned to grapple with a swathe of large swings in Bitcoin’s valuation in the hard ways.
Bitcoin tumbles over 13 per cent
If truth is to be told, Bitcoin had been under tremendous pressure in context of a cascade of caustic comments from Tesla boss Elon Musk as beforementioned, while Tesla Inc. had recently quoted saying that it would no longer accept payments in bitcoin citing the extent of electricity bitcoin miners consume.
Adding further strains, Tesla Inc boss Elon Musk said a week earlier that he was contemplating to sell off $1.5 billion worth of bitcoin which was purchased earlier this year, while on Friday, Chinese regulators had cracked down mining and trading of Bitcoin as a part of their ongoing efforts to prevent a slew of speculative bets alongside an upscaled financial risk that came alongside digital assets, rubsalting the wounds.
Citing statistics, while the report was being prepared, in late-afternoon US trading hours on Sunday, Bitcoin fell just a notch shy of 13 per cent to $32,601, nearly 50 per cent down from a 2021-peak of $64,895.22 reached on April 14, while Bitcoin’s smaller rival Ethereum, was last trading 17 per cent lower to $1,905.
Meanwhile, referring to a raft of unpredictable wild swings in Bitcoin valuations, an RBC Capital Market analyst Amy Wu Silverman said in a client note, “Many points to bitcoin´s volatility as untenable. Indeed, Bitcoin makes severe and dizzying swings. ”