Bitcoin plunges 8.9% to below $35,000

  23 May 2021    Read: 176
Bitcoin plunges 8.9% to below $35,000

Bitcoin fell by 8.9% to $34,156 at 10 a.m. GMT on Sunday, losing $3,344.54 from its previous close, reports citing Reuters.

The world's biggest and best-known cryptocurrency is down 47.4% from this year's peak of $64,895.22 on April 14.

Ether, the coin linked to the Ethereum blockchain network, dropped 11.5% to $2,031.96 on Sunday, down $264.35 from its previous close.

Bitcoin had plunged on Friday, falling more than 11% after China's Vice Premier Liu He said his government will crackdown on the virtual currency's mining and trading activities.

China's Financial Stability and Development Committee, which is chaired by Liu, said on Friday it will resolutely prevent and control financial risks, and singled out Bitcoin as the asset it needs to regulate more.

His remarks came days after China banned financial institutions and payment companies from providing services related to cryptocurrency transactions, and warned investors against speculative crypto trading, according to three industry bodies.

On the other hand, Tesla CEO Elon Musk tweeted on Saturday that in a battle between fiat and cryptocurrencies, his support is with crypto.

"The true battle is between fiat & crypto. On balance, I support the latter," he said on Twitter in reply to a user who asked him what his thoughts were about people who were angry at him because of crypto.

Musk has previously compared Bitcoin to fiat money and often tweets about cryptocurrencies that have sent values for Bitcoin and the meme digital currency Dogecoin up and down.

In February, bitcoin shot higher after Tesla revealed it had bought $1.5 billion of the cryptocurrency and would soon accept it as a form of payment for cars.

However, bitcoin slumped after the billionaire announced in May that Tesla would no longer accept bitcoin for car purchases, citing long-brewing environmental concerns for a swift reversal in the company's position on the cryptocurrency.

Earlier this month, he also called the cryptocurrency a "hustle" during his guest-host spot on the "Saturday Night Live" comedy sketch TV show, leading prices to tumble.

Two days ago, Musk assured that he has not sold any of his Dogecoin holdings and will not sell any.

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