The cryptocurrencies are experiencing a downfall following the tweet by a billionaire named Elon Musk, who criticized bitcoin and said that it is leading to great population levels as its mining requires a lot of energy consumption, leading to CO2 emission in the environment. Now, on 26 May 2021, the cryptocurrencies are recovering back to their normal faces. Bitcoin has touched the mark of $40,000 and his bank to a stable price now. Other cryptocurrencies, along with bitcoins, are also recovering from their highest dips in the last few days of this month. It has been a successful attempt by cryptocurrencies to create something peaceful among its investors. Bitcoin is the largest cryptocurrency token existing in today’s world and has experienced an increase in its price by 7.6%, which made it reach $40,501.
It is not only the bitcoin that is leading the market but there is another cryptocurrency named Ethereum that is also experiencing an increase in its prices. According to cryptocurrency investment, considered to be the largest competitor for bitcoin, and the same has also experienced a dip in its prices since the last few weeks. In the recent week, as also experienced a dip to make it as low as $2000 in its prices, which is not a small amount for a cryptocurrency other than bitcoin. It has been a moment of relief for the cryptocurrency investors this month because, in the last month, cryptocurrencies were valued at their highest prices, but now, from the past few weeks, they have been experiencing a fall in their prices which had created unrest among the cryptocurrency investors.
Bitcoin is a cryptocurrency that is required by different companies for their different works. Earlier, the owner of Tesla company invested a net sum of $1.5 billion in cryptocurrency named bitcoin, and later on, he started to criticize it for its energy consumption. He said that Tesla initiates green fuel and does not want to increase the CO2 emissions in the environment, and therefore it would no longer be accepting bitcoins as a mode of payment for its cars. It is one of the most important reasons because of which the bitcoin prices had fallen in the past few weeks, and along with it, there is some situation going on in China as well. The Chinese government prohibited the financial system of the country from accepting cryptocurrency payments in any work. It is the second most important reason because of which bitcoin experienced a huge fall in its price.
There was the statement given by Jason, who is the founder of Sundial Capital Research Inc. He noted that bitcoin experience this streak of above 200-day average and such a huge spike in the prices of bitcoin because of its volatility is not a good sign if anyone considers the history as a great guide. We believe that investing your money into something which is highly volatile, like bitcoin, is not a good option when the prices are going lower and lower. As noted earlier, in February, Tesla invested $1.5 billion in bitcoins and made a statement that it will also accept bitcoins for its electronic-driven vehicles. Later in this month, it has changed its decision which led to creating unrest among the investors and who were willing to buy the electricity-driven Tesla car.
Even though Elon musk said that he believes in cryptocurrencies as far as they are not so much affecting the fossil fuel and their residues, that digital tokens which are prevailing in the world and still experiencing huge losses because of his actions and the tweets. Such influential people make comments about anything which are highly decentralized, and such decentralized assets will definitely feel the increase or decrease in its price is because of such people.
Bitcoin is about $25,000 shy of its April record of $65,000. Bitcoin prices fell even as low as $30,000 On 25 May 2021, but now it is recovering and has reached a price of $40,000 again. If you look at the overall statistics, the total value of all the 7000 cryptocurrencies available across the globe has decreased by about $700 billion now, which was earlier $1.8 trillion at its peak in May. The crypto economy and system are going to change, but bitcoins and other cryptocurrencies will still be there. In the past year, bitcoin was up by 358%, whereas Ethereum was up by 1300%.
