Just over a few days ago, the cryptocurrency market was expanding like crazy, just like it had been for the past few months, with currencies like Ethereum and Dogecoin witnessing record highs, while Bitcoin stabilized at above $55,000. Then, something untoward happened. Something that shook the entire cryptocurrency market. Elon Musk happened. The eccentric billionaire announced that Tesla would not accept Bitcoin for its cars, erasing any gains that the announcement had provided to the crypto over the last few months.
Back when Tesla had bought $1.5Bn worth of Bitcoin, the company also announced that it would start accepting the currency in exchange for its cars. This led to not just Bitcoin, but the entire crypto market rising at an unprecedented rate, pushing the most valuable cryptocurrency to a record high of more than $65,000.
Then, after a few months and one SNL performance later (don’t get me started on the Dogecoin murder), Elon Musk came out and tweeted that Tesla has decided to cancel its Bitcoin plans, and that the company won’t accept it as a payment method due to the harmful environmental effects caused by its mining.
This led to the market spiraling out of control, and Bitcoin dropping to its lowest price in a few months. The effect was also visible in other currencies, and Ethereum (along many others) also saw billions vanishing in just a few days.
As if that was not bad enough, China today announced multiple restrictions on cryptocurrencies, adding that digital assets cannot be used for transactions. The country directed banks and other parts of its financial institutions to not provide any services related to cryptocurrencies. This includes currency exchanges, registration, trading, clearing and settlement.
All of this combined has left Bitcoin and other cryptocurrencies in dismay, erasing trillions off of the market in just a few days.
All of this comes at a time when India may be looking to accept cryptocurrencies with open arms, after a report claimed that the country may be looking to set up a committee to regulate cryptos, rather than banning them outright.
What this new dip means for the future of cryptocurrencies is anyone’s guess, but for many, this is the ideal time to buy, at least if you have spare money (and a lot of courage).
