Bitcoin price: Will cryptocurrency continue to plummet as Bitcoin suffers severe crash?

Elon Musk announces suspension of Bitcoin Tesla purchases

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Bitcoin has been in a state of flux over the past week. Facing questions about its environmental impact and now under threat of regulation in China, the digital currency has fluctuated in its value and price significantly.

Bitcoin’s price hit massive lows this week with a series of devastating blows for enthusiasts of the digital coin.

The crypto market has also suffered over the past week, however, the wider market is now showing signs of stabilising.

SpaceX founder Elon Musk today revealed on Twitter he would support cryptocurrencies over fiat currencies.

This was a complete u-turn based on contradictory messages he has shared in the past week.

The current price of bitcoin is $38,420.35 (£27,151.23), which is a rise of 2.36 percent in the past 24 hours according to CoinMarketCap.

Other cryptocurrencies have also experienced decline in the past 24 hours with Ethereum, Cardano and Dogecoin dropping by 4.17, 3.05 and 5.41 percent respectively.

Over the past seven days, there is an even more significant period of decline for each of these digital coins.

Bitcoin fell by 20.02 percent, Ethereum by 36.83 percent, Cardano by 29.53 percent and Dogecoin by 30.91 percent in the past seven days.

Bitcoin crashed on Wednesday after Chinese regulators announced cryptocurrency payments would be banned in the country.

Three industry bodies, the National Internet Finance Association of China, the China Banking Association and the Payment and Clearing Association of China, issued a statement warning against certain transactions.

A statement from these bodies read: “Recently, cryptocurrency prices have skyrocketed and plummeted, and speculative trading of cryptocurrency has rebounded, seriously infringing on the safety of people’s property and disrupting the normal economic and financial order.”

The ban would see financial institutions and payment companies unable to offer clients any service involving cryptocurrencies, such as registration, trading, clearing and settlement.

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China’s fight against cryptocurrencies was ramped up for a second time this week after China reiterated threats about a crackdown on digital currency trading and mining.

Just five minutes after the announcement the price of bitcoin fell by more than six percent.

Many other large cryptocurrencies including dogecoin, ethereum and cardano were hit by similar slumps.

In a statement from Chinese Vice Premier Liu He and the State Council, authorities said tighter regulation is needed to protect the financial system.

The statement, released late Friday in China time, said it is necessary to “crackdown on Bitcoin mining and trading behaviour, and resolutely prevent the transmission of individual risks to the social field.”

The crypto market was already struggling after Elon Musk tweeted a statement indicating Tesla was suspending all vehicle purchases using bitcoin.

The statement read: “Tesla has suspended vehicle purchases using bitcoin.

“We are concerned about rapidly increasing use of fossil fuels for bitcoin mining.”

However, in a shocking move, the Tesla founder has now changed his perspective and is now thrown his support behind cryptocurrencies.

Elon Musk tweeted: “The true battle is between fiat and crypto. On balance, I support the latter.”

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