Bitcoin bounces back and acquired gains in Asia trading last Wednesday after a stellar dip less than the $30,000 level since January.
The renowned biggest global cryptocurrency traded at $33,837 and went up 4.5% in Hongkong roughly around 9:18 AM. A day before that, Bitcoin dipped sometime during the trading hours in the US at 12%.
But even at the start of the year, cryptocurrency has been experiencing consecutive decreases causing more than half loss, especially from the $65,000 value which emerged during the mid-April high.
A big deal for anxious investors
Bitcoin investors and critical players perceived the short gain as a positive turnaround by considering the continuing downward trend in the said cryptocurrency giant.
According to Sean Rooney, Valkyrie Investments head of research within its crypto asset, trading signals manifested by the consistent dip of Bitcoin can put investors in “choppy waters” in the weeks to come.
Going below the $30,000 mark can be a decisive moment for Bitcoin players.
Some investors may give up their investments in Bitcoin altogether, considering its competitions such as Ethereum and Dogecoin are making a buzz in the cryptocurrency universe.
The digital asset found itself in an unprecedented position as the popularity of Bitcoin was impressive over the last few years. Wall Street, along with retail investors, has welcomed Bitcoin with open arms. However, factors influencing its stand and contribution to critical issues slowed down the digital asset’s onward direction.
Behind Bitcoin’s exceptional dip
Bitcoin’s reputation was tarnished when popular investors chipped into societal issues involving the cryptocurrency.
Most notably, Elon Musk, founder and CEO of Tesla and SpaceX, voiced his concern about the role of Bitcoin in environmental controversies concerning its massive energy use.
In the past weeks, Musk called for Bitcoin and other cryptocurrencies to consider alternative sources of energy that are sustainable and eco-friendly.
The public break-up between Musk and Bitcoin has wildly influenced other investors and spectators.
In his statement, Musk announced that Tesla would no longer accept Bitcoin as a payment method for their vehicles. One of his recent tweets suggests that he has fallen out of love with Bitcoin.
China clampdown adds to woes
Aside from Elon Musk’s influence on Bitcoin investments, a huge clampdown on its value can be linked to China’s ban on services involving cryptocurrency.
On Monday, China’s central bank reiterated to its biggest lenders like AliPay that cryptocurrency payments and transactions are considered illegal in the country.
According to Trade the Chain crypto analyst Nick Mancini, “The moods among traders is now continuing to sour,” following the bearish announcement from China.
Traders are now seeing negative implications about Bitcoin’s future.
More and more skeptics firmly believe that Bitcoin is now a speculative bubble that could burst anytime soon.
Nonetheless, the cryptocurrency giant recognizes the substantial impact of these turn of events.
Bitcoin executives acknowledge that China’s opposition to cryptocurrency takes Bitcoin steps back from getting accepted in the global financial system.