- The cryptocurrency is down 50% from the year’s high hit on April 14.
- Large cryptocurrency transfers are now reports to Internal Revenue Service.
- Bitcoin markets operate 24/7, setting the stage for price swings at unpredictable hours.
World’s biggest cryptocurrency hit a record-low $32,601 on Sunday, nearly half in value of $64,895.22 on April 14. The acceptance for payments has decreased with the withdrawal of support from high-profile backers as Tesla Inc CEO Elon Musk.
On 16th May 2021, the global cryptocurrency market had a market capitalization of around $2.2 trillion. On Sunday, after seven days, it stands at around $1 trillion. The market stands in red, with all major cryptocurrencies trading at levels lower than their earlier prices.
Bitcoin had been under pressure after a series of tweets last week by billionaire Tesla Chief Executive and cryptocurrency backer Elon Musk. This may make India, the primary major economy to declare cryptocurrency illegal. China, which has banned mining and trading, doesn’t penalize possession.
On the other hand, Ether, the second-largest cryptocurrency, followed a similar pattern, also dropping 17 percent to touch a low of $$1,905. Bitcoin markets operate 24/7, setting the stage for price swings at unpredictable hours.
“We are concerned about rapidly increasing use of fossil fuels for Bitcoin mining and transactions, especially coal, which has the worst emissions of any fuel,” Musk wrote.
Bitcoin prices down: Rise and Fall of cryptocurrency
In February, Tesla announced it had bought $1.5 billion of bitcoin and intended to start accepting it as payment for cars. The cryptocurrency rises sharply after the announcement by World’s richest men.
Two months later in May, Musk announced that Tesla would stop accepting bitcoin due to fears that its “insane” energy use is hurting the planet.
U.S. Treasury Department on Thursday announces new rules that would require large cryptocurrency transfers to be reported to the Internal Revenue Service, and the Federal Reserve flagged the risks cryptocurrencies posed to financial stability.
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