It has not been a good month for Bitcoin - at least not nearly as good as the stellar rounds of news it had earlier in 2021. Earlier this year, Bitcoin was skyrocketing to new heights and performing better in its market value than pretty much any other point in its history. Unfortunately, the popular cryptocurrency has had some setbacks this month and the hits just keep on coming for ol’ BTC. A recent ban of cryptocurrency from financial and payment institutions in China saw Bitcoin drop beneath $40,000 USD in value in what is currently a three-month low for the cryptocurrency.
China recently made a decision regarding all cryptocurrency transactions in payment and financial institutions, as reported by CNBC on May 18, 2021. According to reports, China’s new regulations ban financial institutions and payment companies from transactions and services using or relating to cryptocurrency. The government further warned investors against engagement in speculative trade of the likes of Bitcoin and Dogecoin.
China is hardly the sole source of Bitcoin woes even in May alone, though the country’s widespread decision and regulation does not help the cryptocurrency. Many will recall that earlier this year, Tesla revealed its own decision to invest big into Bitcoin. The cutting-edge car company then allowed customers to make payments via Bitcoin for a short while, leading to some of its highest highs. Unfortunately, Tesla’s active use of Bitcoin didn’t last long. The company would go on to walk back payments allowable via Bitcoin. CEO Elon Musk claimed it was mostly due to the environmental issues associated with the power usage of Bitcoin mining.
An interesting sidenote is that despite China’s regulation, Elon Musk signaled on his Twitter that Tesla will seemingly not being selling off its investment in Bitcoin at this time.
Tesla has 💎 🙌— Elon Musk (@elonmusk) May 19, 2021
Even so, cryptocurrency being banned so heavily in one of the most populated and active nations on the planet was a big blow to Bitcoin. It will be interesting to see if the popular cryptocurrency bounces back, but it would take quite the event to bring it back to the levels of value we saw earlier this year. Stay tuned as we continue to follow this story for further developments.