Bitcoin Drops Below $30K, But Believers Aren't WorriedPublished June 25, 2021 by Elana K
On Monday, China ramped up its opposition, with the People’s Bank of China urging financial institutions not to provide cryptocurrency services. Unsurprisingly, bitcoin dropped to below $30,000 on Tuesday, at one point erasing all of its 2021 gains.
It’s been another volatile week in cryptocurrency, with Coinbase stocks hitting an all-time low of $220 on June 21 (its high was $430/share). The Coinbase slump is being attributed to the poor showing of cryptocurrencies, specifically, bitcoin.
The world’s most popular cryptocurrency has been having a hard time recently, with China cracking down on bitcoin miners and tweets from Elon Musk setting off roller coaster-like ups and downs.
On Monday, China ramped up its opposition, with the People’s Bank of China urging financial institutions not to provide cryptocurrency services. Unsurprisingly, bitcoin dropped to below $30,000 on Tuesday, at one point erasing all of its 2021 gains. The following day, it recouped some of its losses and reached $34,000. It’s still in flux (as usual).
Why Bitcoin Supporters Aren’t Worried
The nature of cryptocurrency is to be volatile, and bitcoin’s recent drops have a lot to do with China’s reinforcement of its opposition to cryptocurrency. But supporters of bitcoin have a long-term perspective. They view it as a cryptocurrency that has established itself and that will one day reach into the hundreds of thousands. Those who have a short-term perspective are the ones who are worried.
The ones with short-term perspectives recall the currency crash of 2018, but many financial analysts today say you can’t compare 2021 to a few years ago. Bitcoin has a successful track record of 10+ years of secure operating, and its use is much more widespread than several years ago. The wide adoption of the cryptocurrency by those who continue to believe in it will ultimately help it succeed.