Bitcoin has for the second time in less than a month fallen below the $30,000 mark that it has been struggling to hold as a result of certain factors. The world’s most popular cryptocurrency fell below $30,000 to $29,600.
The cryptocurrency woes started when electric vehicle company Tesla owned by once the world’s richest man Elon Musk, rejected the currency as a means of payment for its electric vehicles. Tesla pulled the brakes on Bitcoin out of concerns for environmental sustainability and promised to resume accepting Bitcoin as a means of payment once miners find a sustainable way to mine the currency. “Cryptocurrency is a good idea on many levels and we believe it has a promising future, but this cannot come at a great cost to the environment”, Elon Musk tweeted. Chinese regulators have also been carrying out actions against Bitcoin mining in the country. China was once a haven for Bitcoin miners and crypto companies but the crackdowns against Bitcoin and cryptocurrency, in general, have pushed both miners and these companies out of China. This has caused quite a huge strain in the cryptocurrency market.
Mining operations across several provinces in China have been shut down and more than $300 billion worth of cryptocurrency has been wiped off the market. Bitcoin has been struggling between $30,000 and $40,000 after it fell from an all-time high of $65,000. Other factors behind the decline of Bitcoin include a decline in institutional demand for Bitcoin, the continuous drop in the mining hashing rate, and an increase in mining difficulty.
Around this time last month, Bitcoin made a brief plunge below $30,000 and made a quick rebound. The price of Bitcoin had been fluctuating between $30,000 and $40,000 and it was quite unexpected that the currency’s value would fall below the $30,000 milestone. The currency made a rebound and has been struggling between $30,000 and $40,000 until hours ago.
Crypto analysts and enthusiasts had predicted that Bitcoin would reach the $70,000 milestone by the first half of this year but Bitcoin was only able to surpass the $65,000 milestone.