Bitcoin price: cryptocurrency falls, but its terrible career is not over

(CNN Business) – The price of bitcoin is plummeting once again.

The cryptocurrency has fallen roughly 8% in the last 24 hours, according to Coindesk, and was trading close to $ 33,200 as of 4:45 a.m. ET on Tuesday.

Other digital currencies, including ethereum and dogecoin, also fell around 8% or more.

The value of bitcoin has plummeted more than 40% in the past month during a torrent of bad news, including a move by a prominent former backer, Tesla CEO Elon Musk, to stop accepting cryptocurrency as payment for cars. There is also increasing government scrutiny of cryptocurrencies in China and elsewhere.

It’s unclear what is driving the most recent drop, but there have been a handful of events that may be making investors anxious.

What happened?

Musk tweeted a meme that appeared to mourn the end of his relationship with cryptocurrency, causing the value of Bitcoin to plunge on Friday.

And over the weekend, several crypto-related social media accounts were blocked in China, a notable move from a country that in recent weeks has expanded its crypto offensive by banning crypto banks and payment companies provide services related to cryptocurrencies and toughen regulations against crypto mining.

Tuesday, the Securities Daily, a state-owned news organization, praised Beijing’s continued focus on crypto, writing in an editorial that China has entered an era of “strong oversight” over the industry that is needed to guard against financial security risks.

Even former US President Donald Trump has hit bitcoin recently, telling Fox Business on Monday that the coin “looks like a scam” that “takes the edge off the dollar.”

The Biden administration has also focused on the lack of regulation in the crypto market, having recently revealed new plans to tax more to bitcoin. The Federal Reserve seems to be getting more serious about exploring a potential digital dollar.

Reluctance

Experts have pointed out that ransomware actors use cryptocurrencies to launder their transactions, and the US authorities have called the misuse of cryptocurrency in such situations a ‘massive enabler’. Such issues came to attention on Monday when the United States Department of Justice announced that authorities recovered $ 2.3 million in bitcoin paid to ransomware hackers who attacked Colonial Pipeline last month.

The selloff could get worse if bitcoin prices fall below $ 30,000, according to Jeffrey Halley, senior market analyst for Asia Pacific at Oanda.

Breaking below that barrier “would basically put every long position since January 1 in the red, which I think will trigger another capitulation trade,” he wrote in a research note Tuesday.

Julia Horowitz and Paul R. La Monica contributed to this article.