Price of Bitcoin Fell Roughly 8% Over the last 24 Hours

Bitcoin is struggling to strengthen its position, as its price declined roughly 8% over the last 24 hours, it was trading near $33,200 at 4:45 a.m ET on Tuesday. Other cryptocurrencies, including ethereum and dogecoin, also dropped around 8% or more.

The sell-off could worsen if its price falls below $30,000. Breaking below that level would basically put every long position since January 1st in the red, which could trigger another capitulation trade.

The value of the world’s largest cryptocurrency tanked more than 40% over the last month, during a torrent of bad news, including a move by one prominent former backer, Elon Musk. Tesla changed its position regarding bitcoin, and as a result, it no longer accepts bitcoin as a form of payment. There is also increasing scrutiny on cryptocurrencies in China and elsewhere.

Currently, it is not clear what is driving the most recent downturn. There have been several recent developments that may be making investors anxious. Elon Musk tweeted a meme that appeared to lament the end of his relationship with bitcoin, causing its price to sink on Friday. Elon Musk frequently triggers significant moves in cryptocurrency prices, often via obscure remarks on social media. Last year, Musk sent the price of dogecoin up nearly 20% by simply tweeting “One Word: Doge.”

Bitcoin and risk factors

This is the only issue, as over the weekend, several media accounts related to cryptocurrency were blocked in China. It was not possible to access several widely followed crypto-related accounts on Weibo. The Weibo freeze comes as Chinese media stepped up reporting against cryptocurrency trading. The crackdown also comes as the central bank is accelerating the testing of its own digital currency.

In recent weeks, the country widened its crypto crackdown by banning banks and payment companies from providing crypto-related services.

The Securities Daily, which is a state-owned news organization, commended Beijing’s ongoing focus on crypto. China entered an era of strong supervision over the industry, as it is important to protect against financial security risks.

Even former U.S. President Donald Trump criticized bitcoin recently. He stated that the currency “seems like a scam”. The Biden administration also mentioned the lack of regulation in the crypto market. The administration recently unveiled plans to tax bitcoin more heavily. The country’s central bank appears to be growing more serious about exploring a potential digital dollar.