What is the cause of bitcoin’s decline? Bitcoin’s price has plummeted in the latest blow to the cryptocurrency.
BITCOIN is in freefall, but why is this type of cryptocurrency currently in decline?
Bitcoin’s price has changed dramatically in recent weeks as a result of statements from SpaceX creator Elon Musk, Chinese regulatory announcements, and El Salvador’s legalization of the digital currency. However, despite cryptocurrency experts forecasting a period of rise for the coin in the next weeks, the price is already plummeting.
According to CoinMarketCap.com, the current price of Bitcoin is $37,658.14 (£27,110.66).
In the last 24 hours, the value of the digital coin has declined by 2.92 percent.
The price has increased by 2.26 percent in the last seven days, but the trend is downward.
The drop occurred as a result of recent statements made by Elon Musk, the founder of SpaceX, over the digital coin’s environmental impact.
On Thursday, Mr Musk responded to suggestions that bitcoin is “greener” than skeptics claim.
On June 17, he retaliated against Jesse Powell, the CEO of the Kraken cryptocurrency exchange.
Bitcoin, according to Mr Power, is “a lot greener than people give it credit for.”
“I think it’s actually doing a lot for the renewable energy sector,” he continued.
“I’m not sure how long Elon has been studying this, but I believe he still has some research to do.”
Mr Musk responded to Mr Powell’s statements on Twitter by asking, “Based on what data?”
Mr Musk’s post came after his automobile business, Tesla, announced that it would no longer accept bitcoin as payment for its products.
The decision was taken in response to bitcoin mining’s role in climate change.
The SpaceX founder claimed he was looking into ways to make digital currency’ climate impact less harmful, and that he was in talks with Dogecoin engineers about it.
“We are concerned about the fast expanding use of fossil fuels for bitcoin mining and transactions, notably coal,” Mr Musk stated at the time.
Changes in bitcoin are dependent on evolving consumer and social media trends, according to Michael Kamerman, CEO of Skilling.
“Bitcoin is instead driven by headlines, tweets, celebrity, or corporate endorsements, and while “traditional” investors may dismiss this, it is what attracts the masses to cryptocurrencies,” he told this website.
“The general public understands headlines, tweets, and endorsements, and the general public will most certainly mature as crypto aficionados and begin to respect the movement for.”Brinkwire Summary News”.