After hitting peaks of $ 60,000 in recent times, bitcoin has seen a steep decline in recent days. If the value of this cryptocurrency is volatile by nature, more cyclical elements have explained these recent roller coaster movements. Europe 1 takes stock of the causes of these variations.
DECRYPTION
It goes up very quickly and goes down almost as quickly … In recent times in particular, the value of the cryptocurrency bitcoin seems to be doing a little roller coaster. After reaching record amounts in recent weeks with peaks of $ 60,000, the world’s most widely used cryptocurrency has seen a sharp decline in recent days. Why ? Europe 1 deciphers the reasons behind the bitcoin roller coaster.
China on the offensive against cryptocurrencies
First of all, what has mainly broken the momentum is China’s offensive against cryptocurrencies. A priori, this is difficult to understand. The country concentrates 75% of bitcoin mining activities which, in summary, guarantee the validation of virtual transactions. Problem: the Chinese government does not appreciate the strong speculation generated on this cryptocurrency.
This is the reason why we attended these scenes in huge hangars where hundreds of employees turned off the machines one by one. Bitcoin therefore regularly drops below the $ 30,000 mark. But it is also and anyway very volatile by nature. “When you have a cryptocurrency that can earn 400 or 500% in the space of a few weeks, you also have to accept the backlash, the other side of the coin, which is that it can also lose 50% relatively quickly,” notes Nicolas Chéron, market strategist for the Zonebourse.com site.
Interest in cryptocurrencies is not waning overall
“It is this volatility which is also of particular interest to the world of cryptocurrencies”, adds the specialist. In general, interest in cryptocurrencies remains clearly on the rise. Since January 1, the value of all cryptocurrencies has increased from 750 to 1.5 trillion dollars.
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