Bitcoin Massive Dip: What's behind it?

Crypto market has been very emotional lately with all this Elon Musk's drama on Twitter, and the relationship between Tesla and Bitcoin. The recent announcement of Tesla stopping Bitcoin payment method has really caused massive chaos in Crypto market, and causing lots of people to sell their holdings. However, latest tweet from Elon Musk suggests that Tesla has not sold their $1.5B Bitcoin yet.

Despide the price drop, Michael Saylor, Co-Founder of MicroStragy, announced the acquisition of additional $10 Million in Bitcoin. However, the price of Bitcoin kept dropping.

China bans Crypto once again

Recent news reported by Reuters, China has banned all financial companies from using Cryptocurrency. This news has shaken many Bitcoin investors and caused the market to drop roughly around 50%. This happened after Bitcoin bull run. Sounds familiar? Yes, we have seen similar event happened in 2017 Bitcoin bull run when China announced to ban cryptocurrency.

What does this mean to cryptocurrency now?

According to CBECI, China has contributed 65% of Bitcoin mining in the world, making it the largest Bitcoin miner. If there is no cryptocurrency transaction available in China, it will just make it so difficult for Bitcoin miners to exchange their Bitcoin for Yuan.

Furthermore, do people really concern about Elon Musk's statement over Bitcoin and its energy consumption? Well, despite Elon's statement, many people are skeptical about it. If you really do more research, gold mining and current financial insitutions consume way more energy than Bitcoin mining and transaction.

Bitcoin and DeFi (Decentralised Finance) are very new to the world and people. For this to be stable, it has to pass through all of these drama. However, the value of Bitcoin is still strong on its own.