Bitcoin Plummets to Early $30,000s... Ethereum and Dogecoin Also Drop Over 20%
Chinese Financial Authorities Enforce Strong Cryptocurrency Trading Regulations
Musk Suggests 'Continuing to Hold Bitcoin' but Insufficient to Stop Cryptocurrency Decline
On the morning of May 18, the Bitcoin price is displayed on the electronic billboard at Bithumb Gangnam Center in Gangnam-gu, Seoul. [Photo by Yonhap News]
[Asia Economy Reporter Han Seung-gon] "I thought I bought at just the right time... but it wasn't the end." , "Looking for people to meet Musk."
The cryptocurrency market continues to plunge amid global overlapping adverse factors. Chinese financial authorities announced ultra-strong regulations banning cryptocurrency trading within the country, and many analysts believe that Tesla CEO Elon Musk's remarks denying cryptocurrencies have been reflected in the market.
Since many cryptocurrency investors are in their 20s and 30s, reactions to this crash are even stronger among young people. It is practically chaos itself.
There are sighs everywhere from those who bought at what they thought was the bottom only to find it wasn't, and frustrations from those who entered at the peak expecting an uptrend but lost their entire principal.
On the 18th, the China Internet Finance Association, Banking Association, and Payment and Clearing Association sent an official letter to member companies stating, "All financial companies and payment service providers must absolutely refrain from any cryptocurrency-related activities, and violators will face public security investigations and corresponding punishments." The association's letter carries mandatory force and can be seen as applying to virtually all companies.
On top of this, Musk's statements have unsettled investors' psychology. Last week, Musk tweeted implying that Tesla might have sold all its Bitcoin holdings, then followed up with a tweet saying, "We did not sell Bitcoin."
Earlier, on the 13th, Musk suddenly announced the suspension of Tesla car payments via cryptocurrency, citing environmental damage caused by electricity generated from fossil fuels used in Bitcoin mining.
The price of Dogecoin, which Musk often displayed on the cryptocurrency exchange screen, is shown. Dogecoin has plunged nearly 20% on the exchange. [Image source=Yonhap News]
Investors in their 20s and 30s are truly in a state of mental breakdown. Some say that just preserving their principal rather than making a profit is considered a success.
Kim, a man in his early 30s who recently started investing in coins, said, "I was watching from the sidelines and thought the price had fallen as much as it could, so I really bought at the bottom. But it wasn't. There was literally a basement. It's like going beyond Earth," with a bitter smile. He added, "Still, my losses are relatively small, but those who bought at the peak probably find it really hard to manage their mental state."
Bitcoin prices broke below the $40,000 mark on the 19th and quickly dropped to $30,000. The situation on the morning of the 20th was similar. Bitcoin continued to weaken on domestic exchanges that day.
According to the cryptocurrency exchange Upbit, as of 9:14 a.m., one Bitcoin was priced at 50,162,000 KRW. On Upbit, Bitcoin's price fell to 42,595,000 KRW around 10 p.m. the previous night. This was the lowest daily price since February 8 this year (41,562,000 KRW).
On Bithumb, the price also dropped to about 42 million KRW at a similar time the previous night. This was the lowest since February 8 (40,620,000 KRW). It was about half of Bithumb's all-time high recorded on April 14 (81,487,000 KRW).
Previously, Bitcoin was literally a 'bull market' itself. During this period, Bitcoin surpassed 80 million KRW on domestic exchanges. Investors flocked mainly from the 20s and 30s generation familiar with cryptocurrencies, and although there were fluctuations, the chart generally showed an upward curve.
However, after four months, the previous upward trend has literally collapsed, and investors in their 20s and 30s stuck at the peak are confused. Cryptocurrency investment communities are filled with cries close to chaos, such as "I thought it was the bottom, but it keeps falling endlessly. Selling timing is meaningless," "I put in 100,000 KRW and it disappeared immediately," and "This is beyond the level where rescue teams can come. Not rescue teams, but a god needs to come down."
Lee, a man in his 30s, said, "For those who invested large amounts, the price has been almost halved, splitting in two, so they must be in a really serious situation," adding, "I just hope everything passes without incident."
Meanwhile, amid the ongoing cryptocurrency crash, Musk tweeted again suggesting that Tesla will continue to hold Bitcoin, but this did not reverse the market's downward trend.
Economic media CNBC reported on the 19th (local time) that Musk tweeted, "Tesla has 'diamond hands.'"
CNBC criticized that despite the widespread sell-off in the cryptocurrency market, Musk does not seem to be shying away from Bitcoin. Business Insider analyzed that 'diamond hands' refers to traders who believe their stocks and securities will ultimately be profitable and continue to hold them even if their value falls. However, Musk's tweet was insufficient to reverse the market's plunge.
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