Bitcoin’s [BTC] price plummeted almost 30% on Wednesday, as fears over tighter cryptocurrency regulations in China added further negativity following Tesla [TSLA] CEO Elon Musk’s decision to stop allowing bitcoin payments, citing the environmental impact of bitcoin mining.
BTC made a partial recovery before suffering further falls, dropping below $33,000 by early Sunday evening (BST) – a decline of 14.00% in the last 24 hours, according to Coindesk.
Bitcoin’s current woes are at odds with Ark Invest founder and CEO Cathie Wood’s claim that the crypto will eventually soar as high as $500,000. We take a look at whether that can still happen?
Looking at the wider sector, the Blockchain theme ended the week towards the bottom of our thematic investment screener, losing 0.46%, almost in line with a 0.40% fall in the S&P 500. A monthly performance of -3.17% places the Blockchain ETF midway on the screener among 35 tracked themes.
Bitcoin plummets before staging a recovery
Bitcoin plunged 29.54% on Wednesday 19 May, from a high of $43,546.12 to as low as $30,681.50, according to Yahoo Finance, before recovering to close the day at $37,002.44. It marked a fifth successive day of declines in bitcoin’s price, putting the major crypto on track for its worst month in over three years, said Coindesk’s Tanzeel Akhtar.
Global Digital Assets COO, Zachary Friedman, said: “What we saw today was a black swan event of cascading liquidations”. Bitcoin declined over 50% from its 12 April all-time high of $64,829.14, before moving