A torrent of bad news The cryptocurrency star “Bitcoin” suffered a monthly loss last May by about 36%, after it reached levels of more than 64,000 dollars last April, to record its worst monthly performance in nearly a decade, according to CNBC.
Several factors contributed to the fading of bitcoin’s luster, most notably TSLA CEO Elon Musk’s retraction from accepting bitcoin as a means of payment for the sale of electric cars, citing concerns about the impact of bitcoin mining on the environment, which consumes a lot of energy.
On the other hand, China escalated its crackdown on cryptocurrencies and mining centers, at a time when the US Treasury revealed new plans to impose higher taxes on bitcoin trading, while the Federal Reserve hinted at the possibility of a digital dollar, in addition to the crackdowns launched by Iran on several Farms mining bitcoins illegally.
However, despite the monthly collapse of the Bitcoin currency, which is famous for its volatility, its prices are still high by more than 25% during the current year.
Bitcoin’s volatile history testifies to its mood. Perhaps its bad performance last May is not the first time. In 2017, its price dropped from nearly $20,000 to less than $3,500 by early 2019 before rebounding.
Bitcoin also witnessed a decline of about 40% in September 2011 that lasted for three months due to the lack of confidence of investors at the beginning of trading in it.
However, anyone who has experienced that turbulent period in Bitcoin may still be optimistic that it will make a comeback.
But the question remains whether governments will continue their repressive measures to trade in it? Especially since its mining consumes electrical energy equivalent to Argentinas consumption of electricity completely.