Elon Musk announces suspension of Bitcoin Tesla purchases
The price of the world’s most popular cryptocurrency has fallen more than eight percent since the start of Friday, from £ 27,816 to just £ 25,562 as of 7:30 a.m. on Monday.
Ethereum’s price had fallen 3.65% from £ 2,025 to £ 1,951 within days.
Until just under two months ago, the price of Bitcoin had risen significantly, raising new hopes for a major response from the normally turbulent cryptocurrency markets.
The value soared to an all-time high of £ 45,882 on April 15, but has fallen sharply since.
The latest crisis comes as a slew of crypto-linked accounts on China’s Twitter-like platform Weibo were blocked over the weekend as Beijing continues to crack down on Bitcoin trading and mining .
Cryptocurrency experts warned more actions were expected, such as linking illegal crypto activity in China more directly to the country’s criminal law
Just weeks ago, the Chinese State Council said it would crack down on Bitcoin mining and trading, which came days after three industry bodies banned financial services. and payment related to cryptography.
Latest Bitcoin price: Bitcoin price has fallen sharply in recent days and weeks
Latest Bitcoin Price: Bitcoin Price Hit All-Time High Just Under Two Months Ago
Throughout the weekend, access to a number of widely followed crypto-related Weibo accounts was denied, with a message saying each account “violates the laws and rules.”
A Weibo bitcoin commentator, or Key Opinion Leader (KOL), who calls himself “Woman Dr. bitcoin mini,” wrote, “It’s a judgment day for KOL crypto.”
NYU Law School Assistant Professor Winston Ma, referring to Tesla founder and cryptocurrency fan, said: “The government is making it clear that no Chinese version of Elon Musk can exist in the Chinese market of cryptocurrency. “
Mr. Ma, who also wrote the book “The Digital War,” believes China’s Supreme Court will at some point release a judicial interpretation that could link crypto mining and trading companies with the body of criminal law. Chinese.
Latest Bitcoin Price: Bitcoin Is The World’s Most Popular Cryptocurrency
The financial regulator said such an interpretation would resolve the legal ambiguity that has not made it possible to clearly identify bitcoin trading firms as “illegal operations”.
So far, all the rules against cryptocurrencies in the country have been published by the administrative bodies.
The price of Bitcoin had fallen more than seven percent on Friday night after a bizarre tweet from Elon Musk, with rival cryptocurrencies also plunging.
The dramatic drop in the value of cryptocurrencies was accompanied by an odd Tweet from the boss of Tesla, who appeared to mock Bitcoin’s recent struggles.
Latest Bitcoin Price: Elon Musk posted a meme referring to a song by American rock band Linkin Park
Tech billionaire Mr. Musk has been hugely vocal on social media about the use and future of cryptocurrencies.
But his tweets and comments regularly trigger big up or down moves in the volatile market.
In February, the price of Bitcoin hit an all-time high after tweeting that Tesla would start accepting digital currency payments for sales of their electric cars.
The price of Bitcoin jumped a fifth (20%) after Tesla said it made a $ 1.5 billion investment.
The company added that it will eventually accept cryptocurrency as a payment method for its cars.
Latest Bitcoin Price: Elon Musk has been extremely loud about cryptocurrencies in recent weeks
But on May 17, the price of Bitcoin plunged nearly 10% to its lowest level since February after the Tesla boss hinted the electric carmaker might sell off its cryptocurrency holdings.
The previous weekend, Mr Musk suggested that the company was considering selling or may have already sold some of its cryptocurrency holdings.
The Bitcoin price drop was triggered by a tweet sent to Tesla’s boss, which read, “Bitcoins are going to slap each other next quarter when they find out that Tesla has drained the rest of their Bitcoin holdings.
“With the amount of hate [Elon Musk] becomes, I wouldn’t blame him. “
Mr. Musk simply replied, “Indeed.”
He then followed up on this Tweet in the wake of the panic it caused and frankly wrote, “To clarify the speculation, Tesla did not sell any Bitcoin.”
This latest blow to Bitcoin came a week after Tesla’s chief executive said the company stopped accepting Bitcoin as payment for its cars due to concerns about its carbon emissions.
He announced that the automaker has stopped vehicle purchases with the cryptocurrency due to “the increasing use of fossil fuels for Bitcoin mining.”
The Tesla boss tweeted: “We are concerned about the rapid increase in the use of fossil fuels for Bitcoin mining and transactions, especially coal, which has the worst emissions of all fuels.”