#Cryptocrash: Nigerian investors count losses as Bitcoin plummets on China crackdown

Bitcoin regaining loss as it trades at $41,915.66

Bitcoin prices saw a rapid drop last week to an all-time low of below $40,000 a development that led to a brutal sell-off of the cryptocurrency over the week as the market capitalization also dipped causing a huge loss to investors.

Reason for decline

The fall in price can be attributed to:

• The 40 percent new tax increment proposed by Joe Biden’s administration.
• CEO of Tesla Elon Musk also shocked the cryptocurrency market last week after he raised concerns about Tesla’s acceptance of bitcoin as a form of payment.
• However, the bitcoin and crypto sell-off aggravated this week following China’s directive banning its financial institutions from carrying out or participating in any business activities related to virtual currency.

READ ALSO: Nigeria Crypto Ban: “Why further studies are required before regulatory action

This sank the prices of all leading cryptocurrencies erasing months of gains and hundreds of billions in market cap. This saw investment in the cryptocurrency plunging and those who already invested counting their losses.

Reacting to the crash, the author of Rich Dad Poor Dad, Robert Kiyosaki he said “Bitcoin crashing. Good news. Getting ready to buy more. Remember the problem is not Elon Musk or Bitcoin. The problems are the Fed Treasury and Biden Gold Silver and Bitcoin are the solution”

However, as of today, May 20, 2021, 02.09 pm checks by Nigeria Today on Binance revealed that the bitcoin regained some lost ground to trade at $41,915.66 Ethereum trades at $2,933.71

According to Reuters, Its bounce came after prominent crypto backers such as Ark Invest’s (ARKK.P) Cathie Wood and carmaker Tesla’s Elon Musk indicated their support on Wednesday. Wood said in an interview with Bloomberg that she was still sticking to her $500,000 forecast.