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Bitcoin rallies after dramatic crash

Bitcoin went into freefall on Wednesday after China, the world's second largest economy, announced moves to tighten crypto regulations, which would prevent financial and payment institutions from providing digital currency services..

20 May 2021

Bitcoin rallies after dramatic crash

At one point on Wednesday nearly $1trn was wiped off the market capitalisation of the entire cryptocurrency market, with the two main players Bitcoin and Ethereum collapsing by 30% and 45% respectively.

The cryptocurrency market has been a bit wobbly since last week when Elon Musk tweeted that Tesla would no longer be accepting Bitcoin as payment, because of the impact cryptocurrency mining has on the environment.

Elon Musk. Photo: Duncan.Hull - own work/Wikipedia

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Ironically it was Musk who helped Bitcoin rally in tweet signalling Bitcoin investors to hold steady.

Tesla has ��
— Elon Musk (@elonmusk) May 19, 2021

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