Dubai: Bitcoin prices tumbled this week after China’s central bank reiterated that the digital tokens cannot be used as a form of payment in the country. Adding to that, Tesla founder Elon Musk complained about the fossil-fuel usage sustained by the cryptocurrency’s energy needs while reversing his pledge to allow purchases of cars with the largest token. The virtual currency has lost about 40 per cent of its value since April 13 when it hit a high of more than $64,606 (Dh237,297) per digital coin.
But what does this mean for Bitcoin prices in the long and short run? Analysts warn that the recent news that triggered much uncertainty among investors could limit prices of digital assets like Bitcoin and its rivals in the near term. However, Bitcoin has still provided bumper gains for investors who have held them for more than a few months. The price is still up about 31 per cent in 2021 and nearly 300 per cent from a year ago.
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