The value of digital coins continues to astonish investors and financiers globally this year. In early 2021, Bitcoin was offered to buyers at a record price of $51,500. Experts note that in mid-February, investors needed to contribute $51,577 to purchase one Bitcoin. However, during the last trading session, the price of the most popular cryptocurrency, Bitcoin, experienced a 10.42% decrease.
This resulted in investors in the cryptocurrency industry having to pay $40,500 in national currency per coin. This information was presented on the CoinDesk portal on the morning of May 19. As of 7 a.m. Moscow time, the BTC rate was $40,400, which is 0.55% lower than the previous figure.
The morning of May 20 saw Bitcoin's value increase by +30%, considering the record decrease the day before. Today, you can buy the digital currency for $39,900 to $40,700, with its market share standing at 42%. Similar price fluctuations were recorded in March of last year.
Recent Expert Predictions
A day before the record drop in the digital coin's value, cryptocurrency experts speculated on the possibility of Bitcoin devaluation. According to financial analysts, the price of one BTC coin could drop to a record $30,000 to $38,000. Some economic experts predicted an increase in the cryptocurrency's price to $100,000. However, most forecasts carried a negative tone.
Causes of Bitcoin's Decline: Analysts' Perspectives
Yanis Kivkulis, the lead analyst at investment company Exante, stated that the primary reason for the cryptocurrency's value decrease this week was entrepreneur Elon Musk's business statement on the acceptability of working with crypto. Recall that the owner of SpaceX and Tesla officially announced the decision to halt the sale of «Tesla» brand cars for Bitcoins.
Another possible reason that could have influenced the digital coin's price is the U.S. authorities' investigation of the cryptocurrency exchange Binance. Yuri Mazur, the head of the data analytics department at broker CEX.IO, believes that this fact led to the devaluation of the primary coin in the digital economy.
The drop in the cryptocurrency's value is also attributed to the Chinese government's decision to prohibit national companies from providing services related to digital coins, such as ICO exchanges. Private investors from China retained the ability to own and dispose of coins.
Recall that on May 13 of this year, American businessman Elon Musk officially announced the cessation of accepting BTC digital coins as payment for Tesla car purchases. The reason for this decision was the non-ecological nature of cryptocurrency acquisition technologies. However, at the time of his statement, Elon Musk decided not to sell Bitcoin assets of his companies. The entrepreneur stated plans to hold onto the cryptocurrency until Bitcoin mining would be carried out using more sustainable energy sources.
After Elon Musk's statement, the price of Bitcoin on the Binance cryptocurrency exchange dropped by seventeen percent, reaching $46,000. This was a record low for the past eleven weeks. The market capitalization of the first digital coin fell below one trillion in the equivalent of the United States national currency.
