LONDON, ENGLAND – MAY 30: This photo illustration shows a visual representation of the Bitcoin cryptocurrency on May 30, 2021 in London, England. Bitcoin is a decentralized digital currency that has been used since 2009. (Photo illustration by Edward Smith / Getty Images)
Bitcoin and other major cryptocurrencies continued to fall on Sunday after reports from Chinese social media site Weibo suspended Key Opinion Leaders (KOL), rekindling fears of further action in the country.
The flagship cryptocurrency Bitcoin (BTC-USD) fell more than 4% to $ 36,194 (£ 25,559) and fell as much as $ 35,453 on Sunday. Since then, it has reduced some losses and is up less than 0.4% to $ 36,260.
Ethereum (ETH-USD) – the world’s second largest cryptocurrency by market capitalization – fell 4% to $ 2,716 and has since rebounded 4%, while the Dogecoin (DOGE) meme token has risen up to 6% to $ 0.37 crashed.
Weibo (WB) blocked some crypto influencer accounts on Saturday, Coindesk reported, citing a violation of unspecified laws and Weibo community rules. However, accounts that are not involved in ads from exchanges have not been blocked, according to Chinese crypto journalist Colin Wu.
Chart: Yahoo Finance
The decline comes despite positive news from El Salvador and Square (SQ) that failed to address investor concerns about regulatory risk in China.
Nayib Bukele, the president of El Salvador, said Saturday that he would make bitcoin legal tender in the country to make it easier for Salvadorans living abroad to send payments home.
The president tweeted that if passed, the move would open financial services to 70% of non-bank account Salvadorans.
Bukele added that he would send the proposed bill to Congress and, if supported, the Central American nation would be the first in the world to officially adopt the digital currency.
The environmental impact of crypto has been a major concern lately, and North American Bitcoin miners are working to make their energy use transparent through the Bitcoin Mining Council.
U.S. financial services firm Square announced on Saturday that it will be investing $ 5 million in a partnership with blockchain technology provider to build a solar-powered bitcoin mining facility at a blockstream mining location in America.
The story goes on
Tesla (TSLA) boss Elon Musk also sparked a sell-off after saying the electric car maker is giving up its plans to accept Bitcoin as a means of payment due to environmental concerns.
A video was posted on YouTube over the weekend that was reportedly filmed by the hacking group Anonymous, accusing Musk of liquidating dreams and “destroying lives” through his tweets about cryptocurrencies, causing prices to fall.
Continue reading: How harmful is Bitcoin to the environment?
Although Bitcoin has no direct link to the real economy, its large fluctuation in value in recent years has led the government to consider regulating the virtual asset and central banks to look for ways to integrate digital currencies.
In April, the Bank of England and the UK Treasury announced that they were considering a potential national digital currency amid growing interest in digital markets.
Dubbed “Britcoin” by the press, the BoE said that every UK digital currency is a new form of digital money that could be used by households and businesses alike. It would coexist, rather than replace, cash and bank deposits. Both the BoE and the Treasury Department emphasized that they were merely investigating the idea and had not committed to the introduction of “Britcoin”.
Continue reading: Elon Musk’s breakup memes shortened Bitcoin’s price rally
Blockchain-based tokens have also seen several price drops recently in response to raid threats across multiple countries.
Last month, China’s Deputy Prime Minister Liu Hu said China would “crack down on illegal securities transactions and severely punish illegal financial activities.”
Hong Kong said that cryptocurrency exchanges must be licensed by its market regulator. According to the new rules, which were announced after months of discussion, only professional investors with a portfolio of more than $ 1 million can use the platforms.
Meanwhile, Iran announced that it would ban energy-consuming mining of cryptocurrencies after some of its cities were hit by power outages. This may have been due to a drought that affected hydropower generation, but the cryptocurrency was drawing more than 2 GW from its grid every day, the country said.
The Turkish central bank had previously announced in April that it would ban cryptocurrencies for payments. The ban, which came into force at the end of April, prohibits the use of cryptocurrencies and other crypto assets based on distributed ledger technology as payment, be it direct or indirect.
The global crypto market lost 4.28% in the past 24 hours, according to data provider CoinMarketCap.
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