During the whole week Bitcoin was hit by negative sentiment. This also has an impact on the price which continues to fall. In fact, in today’s trading, Wednesday (19/5/2021), Bitcoin price dropped 12,25%.
The price of Bitcoin dropped up to 12.25 %% to a level of US $ 39,812.50. About US $ 280 billion evaporated from the crypto market.
Even in trading this afternoon, the Bitcoin price had collapsed by 13% to the level of US $ 38,585.86, based on data from CoinDesk, and became the lowest level since 9 February.
Negative Sentiment Keeps Hitting Bitcoin
The negative sentiment that has been present over the past week has been the ballast of Bitcoin over the years. On Wednesday (12/5/2021), Tesla CEO Elon Musk said that he had suspended Bitcoin as a means of payment to buy Tesla cars. This is because of the serious environmental impacts of the massive Bitcoin mining process.
So, high-powered computers are used to solve complex mathematical algorithms. Which is to increase the number of Bitcoin circulating in the market and allow for transactions using bitcoin.
As a result of Musk’s comments regarding this, not only Bitcoin lost its power. However, nearly all major cryptocurrencies have also fallen to over US $ 300 billion.
Ironically, the announcement of the cancellation of Bitcoin payments comes just three months after Tesla revealed that it was buying US $ 1.5 billion worth of Bitcoin. And will start accepting bitcoins in return for its products.
Other Negative Sentiments
As for other negative sentiments that can also weigh on the price movement of Bitcoin and others today, three Chinese financial industry bodies have officially stated that financial institutions, including banking and online payment channels, are prohibited from offering any services related to crypto to his client.
However, on a year-to-date basis (YTD), Bitcoin is still strengthening by more than 40%. Meanwhile, over the past year, Bitcoin has still shot up to 320%.
