Cryptocurrency prices started June on a negative note after a less than happy May.
Bitcoin, the world’s largest cryptocurrency, fell 1.1% on Tuesday morning to $ 36,281. Bitcoin hit a record high of $ 64,000 in April.
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Ethereum fell 1.4% to $ 2,548, while Dogecoin fell 1.5% to 32 cents, according to Coingecko.
May has been a tough time for cryptocurrency. China reiterated its call for a crackdown on Bitcoin mining and trading, while the People’s Bank of China said digital coins were not “real currencies.”
According to the Cambridge Center for Alternative Finance, miners in China account for around 71% of bitcoin mining energy consumption, with miners in the United States and Russia responsible for around 7% each.
Cathie Wood, Founder of ARK Investment Management, said Tesla (TSLA) – Get the Tesla Inc report CEO Elon Musk and the environmental-social-governance movement were responsible for the recent decline in digital currencies.
Tesla last month stopped accepting Bitcoin as a payment method for its electric vehicles, citing environmental concerns. A recent Cambridge analysis suggested that Bitcoin uses more electricity than the country of Argentina.
“It was precipitated by the ESG movement and this notion, which was exacerbated by Elon Musk, that there are real environmental issues with bitcoin mining,” Wood said at the Consensus 2021 conference hosted by CoinDesk.
“A lot of institutional buying has been put on hold.”
Wood said she remains confident in the future of Bitcoin, which she described as the world’s first rules-based “global monetary system”, CoinDesk reported.
Tom Lee, co-founder of independent research firm Fundstrat Global Advisors, was also positive about Bitcoin’s future, writing in a research note that “despite another round of ‘negative headlines’, Bitcoin has actually risen. of $ 2,000 over the weekend. “
“I can’t help but view this as increasing the likelihood that Bitcoin has hit a low, given that bad news doesn’t create new lows,” Lee wrote.
Last week, TheStreet.com’s Corey Goldman interviewed Dogecoin investor Glauber Contessoto that “Memes are the language of millennials and in the future we will buy and sell things with memes.”