Milan, 19 May 2021 – Rovinosa fall for Bitcoins. The most famous cryptocurrency lost up to 28% of its yesterday value in a few hours, touching the ‘bottom’ of 30 thousand dollars e burning 500 billion of capitalization. If one analyzes the history of the last three months, the drop is over 40%.
A bad blow for those who, perhaps enticed by the records that the digital currency had reached in mid-April (around 64 thousand dollars), decided to invest in it, not considering that extreme volatility is a structural feature of this instrument. Other cryptocurrencies are also bad, starting with Ethereum, the second ‘force’ in the sector by capitalization, which has sold a third of its value. Dogecoin (-43%) and Coinbase, which opened on Wall Street, losing 12%, were also down headlong.
Summary
But why such a slip? Cryptocurrencies had been in pain for a week after that Elon Musk, the brilliant entrepreneur of Tesla and SpaceX, he had changed his mind on the possibility of accepting digital currency for the purchase of its electric cars.
The reason? The production of Bitcoin and the like is anything but green: it needs large amounts of electricity to power the computers that do the calculations and ‘generate’ the tokens. A turnaround that surprised investors, given that Musk was one of the first fans in particular of Dogecoin.
But just as cryptocurrencies were grappling with a rebound attempt, yesterday came the warning issued by three Chinese financial associations. The Chinese National Internet Financing Federation, the Chinese Banking Federation and the Payments and Clearing Federation did not send it to say: “Cryo-currencies are not real money,” is the reasoning reported by the agencies. Furthermore, the Central Bank of China, in fact, it would have prohibited the issuance of financial instruments linked to cryptocurrencies. Bitcoin immediately fell by 7%, and then reached the lows of the last three months. After all, China has long been a country in favor of cryptocurrencies, but he then radically changed his opinion and now he accuses them of being a tool in the service of criminal activities.
To remember the weaknesses of Bitcoin and cryptocurrencies in general was Luis De Guindos, vice president of the ECB, who reiterated that they “cannot be considered currencies, but an asset with very weak fundamentals, as long as there is no fundamental. Anyone who invests in it takes great risks. “
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