Bitcoin “turbulence”: Investors become gamblers?

Bitcoin is “outcast” everywhere

On June 8, the Bitcoin price suddenly dropped 13% from a day ago to $ 31,000. According to experts, the cause behind the fall is still unclear. But they may be related to concerns about the security of cryptocurrencies.

In addition, the main reason why Bitcoin has continuously dropped sharply in the past time is the increased control by governments. Recently, US officials recovered $ 2.3 million in Bitcoin, equivalent to more than half of the ransom paid by Colonial Pipeline to a group of hackers who attacked the largest US fuel pipeline network with ransomware. money last month.

The US Federal Bureau of Investigation (FBI) owns the key to a Bitcoin wallet that received most of the Colonial Pipeline’s ransom. Bitcoin is the currency often chosen by hackers to demand ransom payments to unlock data locked by ransomware. This move shows that the US government has brought Bitcoin under strict control, because this currency has become a means of supporting illegal activities.

In addition, the impact on energy when mining Bitcoin is a problem that causes many countries headaches. In China, the Yunnan Provincial Energy Administration has announced that it will penalize Bitcoin miners for illegally using electricity. Inner Mongolia and Xinjiang issued similar bans. Sichuan province is also closely monitoring mining operations.

Yunnan province, located in southwestern China, has just issued a ban on the use of electricity for the purpose of Bitcoin mining. This information was published in the local newspaper on June 12. Along with preventing massive electricity consumption, Chinese authorities have also expressed concern over cryptocurrency speculation after the price of Bitcoin and other digital assets fluctuated wildly.

Yunnan is currently the 4th largest Bitcoin mining center in China – the country that generates more than half of global Bitcoin production. However, that will soon change. Immediately after the country’s government announced a tightening of the mining and trading activities of cryptocurrencies, a number of companies that manage the “mine” quickly sought to move elsewhere.

The attractiveness is reduced because of the high price

In addition to external factors, the attraction of Bitcoin plummeting also comes from internal reasons. Since the beginning of the year, the price of Bitcoin has increased, creating a great attraction for financial investors. But after this cryptocurrency repeatedly broke records, interest began to fade.

Many “big hands” in the market are not interested in the price of up to $ 60,000-65,000 of Bitcoin. On June 11, this coin was trading around the $37,500 mark. This is down more than 40% from the record of approximately $65,000 set in April. However, the price is still 25% higher than at the beginning of the year. The Bitcoin market has recovered slightly in recent days, but there is still no sign of hedge funds returning.

Positive news from the upgraded version

Recently, the Bitcoin price bounced up thanks to the positive news about the first upgrade of the coin in 4 years. The upgrade promises to increase Bitcoin’s privacy and transaction efficiency. The first Bitcoin upgrade in 4 years has just been approved by miners around the world. This is a rare consensus among stakeholders. Accordingly, the upgrade is called Taproot and will take effect in November. After the upgrade, the privacy and transaction efficiency of this cryptocurrency will be higher. The new version unlocks the potential for smart contracts, a feature of blockchain technology that eliminates middlemen from complex transactions.

Bitcoin’s Promising Upgrade

Bitcoin price surged while other cryptocurrencies fell. Ether price plunged 3.27% to $2,336 per coin. XRP and Cardano also saw price drops of 0.66% and 3.35%, respectively. Meanwhile, the price of Dogecoin is down more than 1% from a day earlier. According to CoinMarketCap data, Bitcoin’s share in the crypto market has increased by 0.71% from a day earlier to 44.48%.

The Taproot upgrade is the impetus for programmers to build smart contracts on the Bitcoin blockchain, opening up great prospects in the world of decentralized finance (DeFi). Currently, Ethereum is the blockchain that is dominating the field.

Elon Musk Controls Bitcoin Price?

Recently, billionaire Elon Musk revealed that he could accept payments in Bitcoin in the future. “Once confirmed a reasonable amount of Bitcoin, mined with clean energy, Tesla will continue to allow payments in Bitcoin,” Elon Musk replied to a comment on Twitter. After this news, the Bitcoin price rose from over $37,000 to above $39,000. For almost a month, this cryptocurrency has not surpassed the $ 40,000 mark.

Before the news that Elon Musk “manipulated the market”, pushed the price up and down to buy and sell large amounts of Bitcoin for a profit. Many argue that the US Securities and Exchange Commission (SEC) should investigate the CEO of Tesla. In response, Elon Musk asserted that Tesla only sold about 10% of Bitcoin.

Elon Musk has influence on the cryptocurrency market

A month ago, on May 13, Elon Musk caused the value of Bitcoin to plummet when he announced that Tesla stopped accepting payments in Bitcoin because mining this cryptocurrency brought too many negative impacts on the environment. In just one hour, the Bitcoin price dropped by 10%. Since then, Bitcoin price has always been in a downtrend. From above $ 55,000 before Elon Musk’s article, the price dropped to $ 50,000, and then below $ 40,000 after news that China tightly controlled mining and cryptocurrency trading.

It was Elon Musk who contributed to the strong increase of Bitcoin at the beginning of the year. In February, the company said it bought $1.5 billion worth of Bitcoin and agreed to pay for electric cars with Bitcoin. Following Tesla’s move is a series of other large corporations and organizations that accept Bitcoin, helping the price of this currency increase sharply, sometimes reaching over 64,000 USD in April.