The total capitalization of cryptocurrencies fell close to 35% in a single day, with Bitcoin being the most affected, losing around 30% of its value in 24 hours.
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The world of cryptocurrencies is in the middle of a hurricane. Yesterday, it was reported that the Chinese government prohibited the country’s financial institutions from providing services related to digital currencies . Following the announcement, the total capitalization of cryptocurrencies fell close to 35% and Bitcoin lost around 30% of its value , in a single day!
Just in mid-April, Bitcoin (BTC) reached an all-time high of over $ 64,000 , according to data from CoinMarketCap . During the following weeks, he entered a downward streak, which was enhanced on May 16 at night, when Elon Musk announced that Tesla would no longer accept payments with said cryptocurrency .
However, the great thrust was given by the Chinese government on May 18. Yesterday, Bitcoin was trading at about $ 45,500 , but after the ban was announced on Wednesday, May 19, it fell to $ 31,663, according to CoinMarketCap. This means an approximate 30% reduction in its value in the last 24 hours and a total fall of 50.5% in the last month .
Behavior of Bitcoin from May 18 to 19, 2021. Image via CoinmarketCap.
Not only Bitcoin was affected
In the last 24 hours, several cryptocurrencies have suffered the effects of the Chinese ban. The same specialized portal recorded losses in the total capitalization of cryptocurrencies of more than 721,453 million dollars , which translates into a 35% drop in the entire market .
Total cryptocurrency market capitalization from May 18 to 19, 2021. Image via CoinmarketCap.
Ethereum (ETH) , the second most capitalized digital currency, had an average price of $ 3,545 per unit as of yesterday. This morning it was just $ 2,014 , which is down just over 43% .
For its part, Dogecoin (DOGE) , Elon Musk’s favorite cryptocurrency , went from costing $ 0.5035 to $ 0.2360 , that is, a 53.3% drop in value.
Right now, 45 of the 50 most popular cryptocurrencies are in the red with a downtrend . However, both Bitcoin and Ethereum are beginning to show signs of recovery, although they are not strong enough to claim victory.
Joe DiPasquale, CEO and founder of the BitBull investment fund, commented that this is normal volatility for Bitcoin. The businessman pointed out that the cryptocurrency is experiencing “a period of natural consolidation that we consider necessary for the support lines to be formed for a future appreciation,” he told the CoinDesk portal.