Bitcoin Drops Over 15% Amid Musk Tweets and China Warning

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The crypto market is in shambles at the moment. There’s been another huge drop in price after a series of tweets from Elon Musk and a stern warning from China. The Asian country has just reiterated that digital tokens can’t be used for payments, resulting in a sharp drop in Bitcoin’s price.

It has all been going on for over a week. Bitcoin’s influence is waning, and it all started after Tesla CEO Elon Musk announced that he’s dropping Bitcoin. The Bitcoin drops have influenced the whole market and dragged numerous industries down including crypto gambling.

Price Points Lowest Since February

Bitcoin’s price has been on a sharp decline, about a month later than its highest point. On Wednesday, it fell to $38,973 as soon as China de-legitimized digital coins in favor of the digital Yuan. According to experts, this is just the latest chapter of China tightening the noose around crypto. Further drops might be expected, especially due to panic dumps of coins.

While China’s statement doesn’t involve any new regulatory steps, it is certainly concerning. Some experts believe that it’s just a caution due to speculative trading. The statement was conveyed by the central bank, but wasn’t compiled by the government. However, seeing how China is set on the digital Yuan which aims to replace cash, Bitcoin is on shaky ground.

China is increasingly going toward a payment landscape dominated by tech companies rather than banks. The government has strong capital controls in its own CBDC, so it’s no wonder that it’s abolishing cryptos. The Chinese capital controls can be challenged by major crypto purchases in the country, so avoiding them makes perfect sense.

It will be a long crypto winter for several industries including Bitcoin gambling. The sharp price declines are a major problem for the crypto industry in general, with many countries abolishing virtual coins in the past few weeks.

Does Elon Musk Control the Cryptosphere?

While he has denied any claims that he’s the mysterious creator of Bitcoin, billionaire inventor Elon Musk certainly has a strong hold on BTC’s price. His tweets have been pushing the market up or down, and it’s not just Bitcoin. After announcing support for BTC in February, the price has been on a rise. Last week, Musk dropped support, and the price has been falling down.

While he didn’t manage to send Doge flying to the $1 moon, Dogecoin has experienced a renaissance thanks to his tweets. Musk’s tweets have caused controversy and divided the market, even if he admitted that Tesla has not dumped the previously-bought Bitcoins. It’s all a big mystery, but if you ask us, Musk definitely has the potential to be Satoshi Nakamoto.

It remains to be seen if announcing support for another coin will send it flying up. For the past 5-6 months, he has been a catalyst for Bitcoin’s price. He seems to know more about it than most people, and obviously has the power to influence the market.

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May 19, 2021: • No Comments

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