The growing concern of investors about the volatility of digital currencies along with China’s tightening of Bitcoin (BTC) mining activities has caused the world’s largest digital currency to plunge. 9% slope on June 21.
According to the British news agency Reuters, in this session, the price of Bitcoin traded at 32,288 USD / BTC, the lowest level in the past 12 days. If this downtrend persists, this will be the biggest drop in about a month. In the past 6 days, the price of Bitcoin has dropped more than 20% and is down 50% from the peak of $65,000/BTC.
Bitcoin’s price decline is partly due to the Chinese government’s drastic move to control the operation of the digital currency. On June 18, authorities in southwestern China’s Sichuan province ordered the closure of digital currency “mining” projects. China does not recognize cryptocurrencies as legal tender, and the banking system does not accept cryptocurrencies or provide related services.
Besides, the price of Bitcoin has also continuously fluctuated erratically in recent times related to the statements of the CEO of electric car maker Tesla Inc, billionaire Elon Musk. Before that, the price of Bitcoin at one point crossed the threshold of $ 60,000 / 1 BTC when Tesla in February revealed that it had bought $1.5 billion in Bitcoin and would accept it as a form of payment when buying a car.
However, in May, billionaire Musk reversed the decision, citing long-standing environmental concerns around mining this coin. The price of this coin then gradually recovered in June, sometimes reaching the threshold of nearly $ 40,000 / BTC after Tesla left open the possibility of accepting Bitcoin transactions again.
Bitcoin’s steep volatility in value has some investors concerned. The UK Rufder Fund, which is known for its caution, caused a stir in the market by investing in Bitcoin in November last year. But recently on June 8, this fund announced its divestment from cryptocurrencies and made a profit of $ 1.1 billion.