Overnight, the value of Bitcoin increased by more than 1 trillion dollars, and meaningless digital tokens increased by billions of dollars. Bitcoin and Ethereum announced their biggest one-day declines since March last year on Wednesday, and the market value decline of the entire cryptocurrency field is approaching.
The reason for the sharp decline is that China prohibits financial and payment institutions from providing cryptocurrency services. Bitcoin fell to $30,066, its lowest level since late January. Since March 2020, Ethereum has fallen to a low of $1,850, the lowest level since late January, and fell 28% to $2,439.
Ethereum’s single-day loss was the largest since March last year, while the joke Dogecoin token lost 45%. Compared with the price of $65,000 set in April, it has now fallen by more than 50%. Tesla CEO Elon Musk exacerbated this instability, and his comments on social media plagued the crypto community.
The People’s Bank of China issued a statement on Tuesday confirming that digital tokens cannot be used as other payment methods for bulk sales. On the day when the stock market also fell and the Fed was preparing to release the minutes of the last meeting, the sell-off of stocks dominated market discussions. For weeks, critics have been warning that the crypto asset movement will be turbulent, and any signs of selling will lead to a decline in cryptocurrency-linked stocks.
Coinbase Global Inc. fell 5.2% before the market and Marathon Digital Holdings Inc. fell 12%. Then there is musk. Tesla’s boss often publishes obscure articles on Twitter, moving millions of people. After Tesla announced in February, Bitcoin began to rise for more than a month and reached a high of $64,870. This was mainly due to the fact that Tesla’s launch at the time was heralded as a turning point for the currency, and in the cryptocurrency world Many people think this is another gradual development. The dizzying tweet that began last week, when he criticized Bitcoin’s energy consumption.