Why does Bitcoin keep crashing?

The ongoing dumping in the crypto markets is unprecedented! While virtual currencies are in free fall and posting falling values, Bitcoin is sinking further. For several financial analysts, this is justified in particular by the statements of Elon Musk and the Chinese government authorities.

The statement of billionaire Elon Musk; CEO of Tesla

On May 13, the CEO of Tesla, Elon Musk made a statement that made the current value of Bitcoin plummet. He believes that the production of this virtual currency causes the emission of a significant amount of greenhouse gases. In line with his ecological vision for the world, the preservation of climate virtues is a fundamental value for future generations. The subject was the subject of an in-depth article on Koddos .

The surprising decision comes at a time when Tesla, a major car company, was allowing payments in Bitcoin. The company had acquired about $1.5 billion for the purpose to help its customers make transactions. The American billionaire's Tweet managed to wipe out 10% of the currency's total capitalization in just a few minutes. Currently, the powerful currency is now trading at brokers cheaper than the $40,000 mark or so.

The Chinese ideology of cryptocurrencies

China has always been reluctant to accept the emergence of virtual currencies. In fact, this is why the majority of the country's businesses have not allowed payment for Bitcoin transactions. For executives, the latter is not backed by any real financial support, which increases the risk of loss.
Following Tesla, Chinese leaders reaffirm their desire to abandon the currency. The government's statement also had a big financial impact on the real value of Bitcoin among brokers. In one day, the losses recorded are around 15% of the total capitalization of the virtual currency. Although the value of the currency is relatively high compared to other cryptocurrencies, concern is growing over its 42% drop now.