Cryptocurrency: Expert discusses success of Bitcoin
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Bitcoin was the first cryptocurrency to successfully record transactions on a secure, decentralised blockchain-based network. Launched in early 2009, bitcoin is the largest cryptocurrency measured by market capitalisation and amount of data stored on its blockchain. While it started off on a rocky trajectory, bitcoin has surged to popularity in recent years and has now become, arguably, the most mainstream crypto coin out there.
What is happening to bitcoin?
As of the time of writing on Monday, June 7, bitcoin is trading at £25,692.52.
The price of the coin has fallen more than eight percent since trading began on Friday, from £27,816 to just £25,562 at 7.30am this morning.
While it is showing signs of bouncing back, bitcoin experienced a fall in price over the weekend amid tweets from Space X and Tesla CEO Elon Musk and fears of another Chinese crackdown on crypto.
Mr Musk posted a cryptic meme about a couple breaking up over excessive quoting of Linkin Park lyrics.
The CEO shared the meme, quote-tweeting is with ‘#Bitcoin’ and a broken heart emoji.
He then posted another ambiguous tweet, linking a breakup with falling crypto prices.
As a result, bitcoin’s price fell about six percent, with ethereum dropping seven percent and the men-based dogecoin falling eight.
Chinese authorities have also recently cautioned on crypto trading, which has put huge pressure on prices.
Jonathan Cheesman, head of over-the-counter sales at FTX, said in a note on Sunday: “Uncertainty about China crypto regulations are still a headwind.
“So far it’s been pretty piecemeal, focusing on mining, new issuance and retail influence.”
Bitcoin is also struggling with technical levels, remaining below its 20-day and 200-day moving averages, reports Fortune.
EverCore ISI technical strategist Rich Ross wrote in a note on Friday that bitcoin “remains vulnerable to a test of critical support at $29,000″.
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This is far from the first time Mr Musk’s tweets have shifted the balance of the crypto market.
Last month the billionaire took to Twitter to announce Tesla would no longer be accepting bitcoin payments in exchange for its cars – a move that caused a minor market crash.
Dogecoin has been dramatically impacted by Mr Musk’s influence on the market, making it soar just two months ago.
However, after plugging the digital coin on Saturday Night Live on May 8 but branding it a “hustle”, the price crashed again.
Bitcoin support continues to grow in some areas, still, and it could very well bounce back quickly.
In comments from a video broadcast at the bitcoin 2021 conference in Miami, USA, El Salvador President Nayib Bukele said he plans to make bitcoin legal tender in the country.
San Francisco-based Square Inc said it will invest $5million to build a solar-powered bitcoin mining facility in an effort to get over the coin’s environmental concerns.
The project is expected to be constructed at a Blockstream Mining site in the US through a partnership with the blockchain technology founder.
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