Bitcoin bounces back after plunging almost 30% to $30,000
15:29, 19 May 2021
Bitcoin (BTC) plunged almost 30% Wednesday toward $30,000 in a selloff fueled by fears of a potential Chinese crackdown on cryptocurrencies, before paring the day's losses during the European afternoon.
The world's largest cryptocurrency by market value has bounced back to around $37,000 as of 5 p.m. London time. Bitcoin has lost more than 40% of its value since hitting a record high of around $64,000 last month, after being buffeted by a series of negative news in the past week.
From bad to worse
Wednesday's rout came as a continuation of declines that started on 12 May, after Tesla founder Elon Musk said his company would no longer take bitcoin payments for its electric cars due to concerns over the cryptocurrency’s environmental impact.
Speculation over Tesla selling its bitcoin holdings further exacerbated the plunge over the weekend, despite Musk denying the rumour. The asset's losses deepened after Chinese authorities hinted this week that they would crack down on cryptocurrency dealings at domestic financial institutions.
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Crypto universe roiled
All the major cryptocurrencies were impacted by the selloff. Ethereum (ETH) went close to $2,000 before bouncing back to $2,650 and Binance (BNB) went under $300 before rebounding to $360. The volatility also determined higher transaction volumes on all these crypto assets.
The overall market capitalization of global cryptocurrencies is now down at $1.66trn, from over $2.5trn just a week ago.
Read more: Bitcoin falls below ,000 after China ban
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