Bitcoin plunges 30% on warning from China and comments from Elon Musk

Bitcoin accelerated its fall on Wednesday, May 19, losing 30% at one point, but later regained some strength after a warning from several Chinese banking federations about cryptocurrencies and negative statements by American tycoon Elon Musk.

The main cryptocurrency traded at $ 30,016.83, less than half that of a month ago, although it later recovered some of its value and rose to $ 33,710, with a 23% drop on the day of May 19.

Despite this, this virtual currency, which has generated a huge speculative wave, remains at very high levels compared to the beginning of the year.

"China dug into the wound by stating that virtual currencies should not and cannot be used in the market because they are not real currencies," said Fawad Razaqzada, an analyst at Thinkmarkets.

Cryptocurrencies "are not true currencies," several benchmark Chinese banking federations considered Wednesday, warning of the danger of "speculation" in a country that is preparing its own digital currency.
China was for a time one of the strongholds of bitcoin, the most widespread virtual currency.

For his part, Musk, the manufacturer of electric cars Tesla and founder of Paypal, decided to suspend the payment of his vehicles with bitcoins in mid-May, which had been possible for a few weeks.