Elon Musk helps Bitcoin in recovery after market meltdown

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Bitcoin, one of the most strong cryptocurrencies, plummeted 30% to $30,000 in a wild session a day earlier but the crashed marked on Thursday headed to recovery after Tesla founder Elon Musk’s tweet cushioned the losses of the digital currency.

The virtual currency witnessed a decline less than half the record value it reached in April before plunging from $39,500 around 2000 GMT. The value of Bitcoin was still above its level at the start of the year.

Bitcoin regained some value following tweets from Musk that featured a diamond and hands emoji, hinting that the automaker had not sold off its bitcoin assets as the CEO had suggested recently.

The bloodbath in cryptocurrency market came on the heels of China’s curbs against digital currency.

Chinese authorities on Wednesday said cryptocurrencies would not be permitted in transactions and warned investors against taking part in speculative trading, despite the country providing power to most of the world’s mining.

Trading in cryptocurrencies has been banned in China since 2019 to prevent money laundering, as leaders try to stop people from shifting cash overseas. The country had been home to around 90 percent of the global trade in the sector, AFP reported.

In a statement, three state-backed industry associations said “cryptocurrency prices have skyrocketed and plummeted, and cryptocurrency trading speculation activities have rebounded.”

The price fluctuations “seriously violate people’s asset safety and disrupt normal economic and financial order,” said the statement posted the People’s Bank of China on social media.

Warning people, it said that the “losses caused by investment transactions are borne by the consumers themselves,” since local laws offers no protection to such transactions.

It recalled that providing cryptocurrency services to customers and crypto-based financial products was illegal for Chinese financial institutions and payment providers.

Read more: https://pakobserver.net/here-are-four-important-cryptocurrencies-other-than-bitcoin/