According to real-time data from Bitstamp, a Bitcoin trading station located in Luxembourg, on May 19th, global cryptocurrencies suffered a significant decline, with Bitcoin dropping to $30500 per coin, with the largest drop of nearly 30% in 24 hours. Since May 12th, Bitcoin has fallen from a high of $57808 to its current level of $33000, with a weekly decline of over 40%
According to real-time data from Bitstamp, a Bitcoin trading station located in Luxembourg, on May 19th, global cryptocurrencies suffered a significant decline, with Bitcoin dropping to $30500 per coin, with the largest drop of nearly 30% in 24 hours. Since May 12th, Bitcoin has fallen from a high of $57808 to its current level of $33000, with a weekly decline of over 40%.
Trend of Bitcoin within 1 hour before publication
Bitcoin's weekly trend
In addition to Bitcoin, Ethereum dropped 46%, OKB dropped 56%, Litecoin dropped 51%, and HT dropped 40%. According to Coin data, in the past 24 hours, the market has had a total of approximately 5.92 billion US dollars (approximately 38 billion RMB) in exposed positions, with nearly 480000 people exposed. In response, some voices believe that the cause of Bitcoin's sharp decline is the comments of Tesla CEO Elon Musk, while today's sharp decline is related to yesterday's heavy attack on "virtual currencies" by the Mutual Fund Association and other three associations.
Musk: Bitcoin's "high energy consumption" has been suspended and is considering other cryptocurrencies
In February of this year, Tesla purchased $1.5 billion in Bitcoin. Tesla's first quarter financial report shows that Tesla sold 10% of Bitcoin in the first quarter, which also increased the company's profits by $101 million. Tesla's support for cryptocurrencies has driven the prices of cryptocurrencies, including Bitcoin and Dogcoin, to skyrocket.
On March 24th, Musk announced on Twitter that he could use Bitcoin to purchase Tesla vehicles. He also stated that later this year, payments can also be made using Bitcoin outside of the United States. According to Tesla, only internal open-source software is used to directly operate Bitcoin nodes. Bitcoin paid to Tesla will be retained as Bitcoin and will not be converted into legal tender.
On May 13th Beijing time, Tesla CEO Elon Musk stated on Twitter that Tesla has suspended the use of Bitcoin to purchase cars due to concerns about the high energy consumption required for Bitcoin mining, which could burden the environment. He also stated that Tesla is researching the use of other cryptocurrencies for payments, which immediately led to a sharp decline in virtual currencies such as Bitcoin.
On the evening of the 8th, Musk also admitted that the "dog coin" was a "hustle" in the old American entertainment variety show "Saturday Night Live" (SNL). The dog coin fell in an "avalanche" and its trading price fell 38.6%.
Three associations including the Mutual Fund Association:Prohibit relevant institutions from engaging in virtual currency business
On May 18th, the China Internet Finance Association, the China Banking Association, and the China Payment and Clearing Association jointly released a notice on preventing the risk of virtual currency trading speculation, which is considered an important reason for the sharp decline of Bitcoin today. The announcement of the Mutual Fund Association and other three associations pointed out that recently, the prices of virtual currencies have skyrocketed and plummeted, leading to a rebound in virtual currency trading and speculation activities, seriously infringing on the safety of people's property and disrupting the normal economic and financial order. Virtual currency is a specific virtual commodity that is not issued by monetary authorities and does not have monetary attributes such as legal compensation and coercion. It is not a real currency and should not and cannot be used as currency in the market.
The announcement points out that currently, conducting legal tender and virtual currency exchange and virtual currency exchange business, buying and selling virtual currencies as central counterparties, providing information intermediaries and pricing services for virtual currency transactions, token issuance financing, and virtual currency derivative transactions are in violation of relevant laws and regulations, and are suspected of illegal fundraising, illegal issuance of securities, illegal issuance of token coupons and other criminal activities.
The announcement emphasizes that relevant institutions are not allowed to carry out business related to virtual currencies. It mainly involves three aspects:
Firstly, financial institutions, payment institutions and other member units should effectively enhance their social responsibility, and shall not use virtual currency to price products and services. They shall not underwrite insurance business related to virtual currency or include virtual currency in the scope of insurance liability. They shall not directly or indirectly provide customers with other services related to virtual currency, including but not limited to: providing customers with virtual currency registration, trading, clearing, settlement and other services; Accepting virtual currency or using virtual currency as a payment and settlement tool; Provide virtual currency exchange services with RMB and foreign currencies; Carry out virtual currency storage, custody, mortgage and other businesses; Issuing financial products related to virtual currency; Using virtual currencies as investment targets for trusts, funds, and other investments.
Secondly, financial institutions, payment institutions and other member units should effectively strengthen the monitoring of virtual currency trading funds, rely on industry self-discipline mechanisms, strengthen risk information sharing, and improve the level of industry risk joint prevention and control; If clues of violations are discovered, measures such as restricting, suspending or terminating relevant transactions and services should be taken in a timely manner according to the procedures, and reported to relevant departments; At the same time, actively utilize multi-channel and diversified communication methods, strengthen customer promotion and warning education, and proactively provide risk alerts related to virtual currencies.
Thirdly, member units of internet platform enterprises are not allowed to provide online business premises, commercial displays, marketing promotion, payment diversion and other services for virtual currency related business activities. If any related problems or clues are found, they should promptly report to relevant departments and provide technical support and assistance for relevant investigations and investigations.
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