Bitcoin has confronted tons of highs and lows in its entire lifetime as not a single government authority backs up bitcoin.
As a result, tons of crucial factors influence the value of bitcoin.
Recently, there was the announcement of a cryptocurrency crackdown with a major focuse on bitcoin.
It has impacted the entire cryptocurrency industry in one go.
All the more impacts are exceedingly gigantic.
In other words, bitcoin is the most popular cryptocurrency subjected with a considerable user base.
Bitcoin is an utterly anonymous digitalized having no government authorities involved in the complex.
That has concerned several countries to continue bitcoin trading and investment.
Authentic applications like this trading software can help you in availing fruitful results in your bitcoin expedition.
Below are some of the crucial impacts of the bitcoin crackdown in the cryptocurrency industry.
So without wasting any further dues, let’s look.
Quick Overlook
Why Did China Announce a Bitcoin Crackdown?
Several countries have acquired an exceeding extent of capital from just bitcoin.
And China is the second country to avail an exceeding extent of profit from the bitcoin industry.
In contrast, the United States remains the first.
In a nutshell, bitcoin exceedingly attracts China’s population.
The inclining popularity of bitcoin concerned financial authorities of China.
The volatile nature of bitcoin made these higher authorities take such harsh decisions on bitcoin.
However, bear in mind that they do not ban bitcoin in China for trading and investing purposes.
Higher authorities of China have merely banned bitcoin mining, any financial institution rendering cryptocurrency services, all the more acceptance of bitcoin as a payment method.
The prominent reason behind banning bitcoin was to aim for the financial stability of the county economy.
Nevertheless, the impacts of the bitcoin crackdown in the cryptocurrency industry were severe; let’s have a look.
Bitcoin Plummeted
Bitcoin is the most popular and preferred cryptocurrency.
And all the more bitcoin maximalist believes that there is no cryptocurrency better than bitcoin.
However, you might be familiar with the fact that a lot of things impact the value of bitcoin.
For instance, any crypto regulation rule or protocol from the higher authority of any country.
The instance of cryptocurrency crackdown correspondingly declined the value of bitcoin as it panicked the investors from China.
And in a nominal time, the value of bitcoin crashed.
Subsequent to the cryptocurrency crackdown, bitcoin plummeted by 30% and 50% from the highest of this year.
The value of bitcoin prior to the cryptocurrency market crash was floating nearby $50000.
However, after the cryptocurrency crackdown announcement, bitcoin started being traded at an amount of $30000.
You might be familiar with the fact that every other cryptocurrency is derived from the core notion of bitcoin.
All the more, these altcoins conferrers the path defined by bitcoin.
Conferring the bitcoin path, cryptocurrencies like ethereum, dogecoin, and many other plummeted.
Ethereum tumbled by 45%, whereas dogecoin declined by 39%.
In a nutshell, the price of major cryptocurrencies, including bitcoin was declined to an exceeding extent.
Elon Musk’s Blame in Bitcoin Crackdown
Elon Musk is the co-founder of Tesla Motors and the Space X Foundation.
Mr. Musk has been highly active in the cryptocurrency industry for a year.
In December, Elon Musk announced that Tesla Motors had invested a gigantic buck in bitcoin.
The total amount Tesla Motors invested in bitcoin was $1.4 billion dollars.
The price of bitcoin subsequent to the announcement of Elon Musk surged.
In March, Elon Musk announced that they will accept bitcoin as a payment method in Tesla Motors.
The corresponding tweet of Elon Musk surged the value of bitcoin to an exceeding extent.
And bitcoin touched its highest till now in the midst of April.
However, on the 13th of May, Elon Musk shocked every possible individual with a reversal tweet.
Elon tweeted that they will not accept bitcoin as a payment method anymore.
This was due to the energy consumption and fuel emission of bitcoin mining.
As a result, the price of bitcoin declined to an exceeding extent after the tweet of Elon Musk.
And the price tumbled more with the announcement of the crackdown.
Subsequent to the market crash, crypto watchers blamed Elon that he was responsible for the cryptocurrency crash.
According to few robust sources, Elon Musk created a situation of the pump and dumped it in the marketplace.
Thus, this the impact of the cryptocurrency market crash on the entire cryptocurrency industry.