Bitcoin (BTC) price has been stuck in the $30,000-$35,000 band recently and seems to be in a loop.
The leading cryptocurrency Bitcoin (BTC), which made a good start to the week by rising to $ 34,700 on Monday, fell in the middle of the week as it has been for a few weeks, and the price retreated to the levels of $ 31,600. So, why is this drop in Bitcoin price happening?
The Influence of China and Tesla
Bitcoin, which was traded at $ 31,790 as of the writing of the article, broke its own record with $ 64,900 on April 14. Therefore, it can be stated that Bitcoin has lost more than 50% of its value in 3 months.
Behind the decline in the Bitcoin price was primarily China's pressure on cryptocurrency miners and the closure of mining facilities, followed by Tesla's decision to stop accepting Bitcoin payments due to energy concerns. Later, negative statements from China are thought to be an obstacle to the rise in front of Bitcoin.
Positive Things Are Also Happening
However, according to the latest data, the miners who closed their mining facilities in China started to operate again in different areas. The rise in Bitcoin hashrate can also be shown as one of the most important proofs of this.
On the other hand, Tesla CEO Elon Musk also stated that Tesla may start accepting BTC again when at least 50% of Bitcoin mining is done with renewable energy. As a matter of fact, in the latest statements, it was reported that BTC mining with clean energy reached 50%.
Why Is The Bitcoin Price Falling?
As you can see, the last drop in Bitcoin price was caused by a state's announcement of a decision that could affect the BTC hashrate and the negative statements of a large firm. Historically, it is behind the declines in Bitcoin price; There are many reasons such as false news, creation of FUD, pressure from governments, speculation, manipulative movements and panic selling on small declines.
However, at this point, it should be underlined that the aforementioned situations lose their effect sooner or later and the Bitcoin price is on the rise again.
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