Bitcoin (BTC) has touched another low for the month of May 2021 on Friday, May 22 after China goes all out after Bitcoin miners and traders. This is for the second time in a week that the BTC price has slipped under $35,000. The BTC price touched an intraday low of $33,729 before recovering as traders ended booking up heavy losses.
Amid massive FUD, traders have been liquidating their supplies very fast. The Bitcoin network realized profit and loss has hit an all-time low as per on-chain data provider Santiment.
📉 #Bitcoin‘s price is back to $37k and #Ethereum‘s back to $2.4k. Our network realized profit/loss metric for each asset has shown record-breaking outputs, as traders #FUD out. Historically, these lows spikes typically lead to at least short-term bounces. https://t.co/xyfPYuhC76 pic.twitter.com/d9Y44yQUyN
— Santiment (@santimentfeed) May 21, 2021
Bitcoin (BTC) has shown massive volatility over the last week with its price making wild swings up and below the $40,000 levels. Considering that a low of new investors has joined the Bitcoin network over the last few months, the price volatility is something they are experiencing for the first time.
Speaking to CNBC, MicroStrategy CEO Michael Saylor said that BTC price volatility is the price investors pay in short term to get outsized returns over the span of a decade.
“#Bitcoin is coming to life… the volatility is the price you pay for it to be 10x outperforming the S&P index over a decade,” @michael_saylor says. #crypto https://t.co/ZdT1mvf0MS pic.twitter.com/407pmdJrLC
— CNBC (@CNBC) May 21, 2021
Earlier this week, MicroStrategy added another 230 Bitcoins worth $10 million at price above $40,000. The company’s total Bitcoin holdings now stand above 92,000. Saylor also confirmed that all entities under them continue to hold their BTC.
China’s Crackdown on Miners and Bitcoin Traders
After banning banks and other institutions from dabbling into crypto, Chinese regulators are now tightening their grip over miners and traders. Chinese Vice Premier Liu He and the State Council released a statement saying strict regulations are the need of the hour in order to protect the country’s financial system.
In the latest statement, China called it necessary to “crack down on Bitcoin mining and trading behavior, and resolutely prevent the transmission of individual risks to the social field”. The authorities are also questioning the legality of Bitcoin usage. The statement noted:
“It is necessary to maintain the smooth operation of the stock, debt, and foreign exchange markets, severely crack down on illegal securities activities, and severely punish illegal financial activities”.
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