Bitcoin lost 30% of its value in one day! Plummeted to less than $ 32,000 after ban announcement in China

The total capitalization of cryptocurrencies fell close to 35% in a single day, with Bitcoin being the most affected, losing around 30% of its value in 24 hours.
Bitcoin lost 30% of its value in one day! Plummeted to less than $ 32,000 after ban announcement in China
Image credit:

Free Book Preview Money-Smart Solopreneur

This book gives you the essential guide for easy-to-follow tips and strategies to create more financial success.
3 min read
This article was translated from our Spanish edition using AI technologies. Errors may exist due to this process.
Opinions expressed by Entrepreneur contributors are their own.

The world of cryptocurrencies is in the middle of a hurricane. Yesterday, it was reported that the Chinese government prohibited the country's financial institutions from providing services related to digital currencies . Following the announcement, the total capitalization of cryptocurrencies fell close to 35% and Bitcoin lost around 30% of its value , in a single day!

Just in mid-April, Bitcoin (BTC) reached an all-time high of over $ 64,000 , according to data from CoinMarketCap . During the following weeks, he entered a downward streak, which was enhanced on May 16 at night, when Elon Musk announced that Tesla would no longer accept payments with said cryptocurrency .

However, the great thrust was given by the Chinese government on May 18. Yesterday, Bitcoin was trading at about $ 45,500 , but after the ban was announced on Wednesday, May 19, it fell to $ 31,663, according to CoinMarketCap. This means an approximate 30% reduction in its value in the last 24 hours and a total fall of 50.5% in the last month .

Behavior of Bitcoin from May 18 to 19, 2021. Image via CoinmarketCap.

Not only Bitcoin was affected

In the last 24 hours, several cryptocurrencies have suffered the effects of the Chinese ban. The same specialized portal recorded losses in the total capitalization of cryptocurrencies of more than 721,453 million dollars , which translates into a 35% drop in the entire market .

Total cryptocurrency market capitalization from May 18 to 19, 2021. Image via CoinmarketCap.

Ethereum (ETH) , the second most capitalized digital currency, had an average price of $ 3,545 per unit as of yesterday. This morning it was just $ 2,014 , which is down just over 43% .

For its part, Dogecoin (DOGE) , Elon Musk's favorite cryptocurrency , went from costing $ 0.5035 to $ 0.2360 , that is, a 53.3% drop in value.

Right now, 45 of the 50 most popular cryptocurrencies are in the red with a downtrend . However, both Bitcoin and Ethereum are beginning to show signs of recovery, although they are not strong enough to claim victory.

Joe DiPasquale, CEO and founder of the BitBull investment fund, commented that this is normal volatility for Bitcoin. The businessman pointed out that the cryptocurrency is experiencing "a period of natural consolidation that we consider necessary for the support lines to be formed for a future appreciation," he told the CoinDesk portal.

More from Entrepreneur
Our Franchise Advisors will guide you through the entire franchising process, for FREE!
  1. Book a one-on-one session with a Franchise Advisor
  2. Take a survey about your needs & goals
  3. Find your ideal franchise
  4. Learn about that franchise
  5. Meet the franchisor
  6. Receive the best business resources
Entrepreneur Insider members enjoy exclusive access to business resources for just $5/mo:
  • Premium articles, videos, and webinars
  • An ad-free experience
  • A weekly newsletter
  • A 1-year Entrepreneur magazine subscription delivered directly to you
Try a risk-free trial of Entrepreneur’s BIZ PLANNING PLUS powered by LivePlan for 60 days:
  • Get step-by-step guidance for writing your plan
  • Gain inspiration from 500+ sample plans
  • Utilize business and legal templates
  • And much more

Latest on Entrepreneur