Bitcoin Loses Almost 50% of Value in Biggest Drop of 2021

Bitcoin registered a 13% drop on Sunday (23), after falling almost 50% from the peak of 2021. Around 18h00 GMT (15h00 Brasília), the currency lost US $ 4,899.54 26 thousand, in direct conversion), reaching US $ 32,601 (about R $ 174 thousand).

This figure, to the unhappiness of investors, approaches the half registered on April 14, when bitcoin reached an incredible $ 64,896.22 (about R $ 348 thousand, at the time). The period of instability began on May 12, when Tesla CEO Elon Musk announced on Twitter that the electric car maker would no longer accept bitcoin payments.

As a justification, the magnate indicated that, given the environmental impacts caused by the currency, its use was not worth it. Musk’s comment ended up reverberating in the economy.

China causes market instability

Before fully recovering from the coup, the currency was hit again, this time by China. Last Friday (21), Chinese authorities issued a statement promising to “crack down on bitcoin mining and its commercial behavior” due to high volatility.

As a result, large Chinese mining companies stopped trading the asset, which accumulated US $ 41 thousand in value (R $ 219 thousand) and suffered a drop of 12%, once again being traded below US $ 37 thousand (R $ 198 thousand) ), informs the marketcap website.

The comment, however, not only affected bitcoin, but the cryptocurrency market as a whole. After China’s demonstration, assets in this segment fell by 7% to 22% on Friday.

According to representatives of the Chinese government, financial institutions should avoid offering services linked to these assets. It is worth remembering that, despite the attacks on the market, the country will be the first to create its own cryptocurrency, the digital yuan, which should be launched in 2021.

Bitcoin should recover

Although still in a downward trend, bitcoin is gradually recovering from the latest events. This Monday (24), the asset reached US $ 37,648.60 (R $ 201,657.20) – which may be a slight sigh for the appreciation.

“Our trend is to expect some stabilization in the next week, which should translate into a new peak,” said Joseph Edwards, chief research officer at Enigma Securities.

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