Jakarta, CNBC Indonesia – Cryptocurrency experienced crash again in May, just weeks after setting an all-time high. In the previous 2 weeks, the price of bitcoin cs had plummeted insanely, while this week it was more stable even though it was still not free from the downward trend.
On Sunday trading (30/5/2021), bitcoin prices fell 4.23% to US $ 33,717.9 / BTC or the equivalent of IDR 482 million / coin (exchange rate of IDR 14,300 / US $), at 8:38 WIB, launch data from Refinitiv. With this decline, the total during this month the price of Bitcoin has collapsed by more than 40%, even on May 19, it almost broke below US $ 30,000 / BTC.
At the same time, ethereum’s price has dropped more than 9% to US $ 2,206.69 / ETH, while so far this month its value has shrunk 20%.
Ripple is worse than bitcoin, throughout the month of May it fell by almost 50%, and this morning it was minus 8%.
Then today Dogecoin fell more than 8%, while throughout May the decline was the smallest, only 5%.
Except for Dogecoin, bitcoin and other cryptocurrencies mentioned above actually strengthened during this week. Bitcoin, for example, gained about 4% after experiencing two “terrible” weeks.
However, Edward Moya, an analyst at Oanda Corporation, warned that the crypto market is currently unstable.
“The volatility in the crypto market has decreased this week, but it may not last long,” said Moya, as reported by the Express, Sunday (30/5/2021).
“Bitcoin is still in a consolidation phase, but if the US $ 37,000 / BTC level gains momentum, bitcoin’s position will deteriorate rapidly,” he added.
The price of bitcoin is currently below this level, so the risk of a further slump in bitcoin is even greater.
CS bitcoin price drop occurred after receiving “resistance” from several countries. President Xi Jinping’s China prohibited financial institutions such as banks and payment fintechs from providing cryptocurrency transaction services. In addition, China will also issue new rules to crack down on mining and trading cryptocurrencies.
Then there is US President Joe Biden who imposes tax reporting for crypto transactions above a certain value, this time Iran also banned it.
The Iranian government also announced a temporary ban on mining bitcoin and other cryptocurrencies on Wednesday (26/5/2021). The reason, officials called the activity “wasteful” of energy and led to blackouts in several cities in Iran.
In addition, Elon Musk, who made crypto currency prices skyrocket this year, also turned him around after announcing Tesla would stop using bitcoin in the purchase of Tesla cars. The reason is that bitcoin mining has triggered an increase in the use of fossil fuels which are not environmentally friendly.
“Tesla has suspended the purchase of vehicles using Bitcoin. 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 any fuel,” tweeted Elon Musk in mid-May.
CNBC INDONESIA RESEARCH TEAM
(pap / pap)