Cryptocurrency crash latest – Bitcoin and Ethereum plunge to one year low as new Clucoin currency surges

WHAT IS THE BITCON PRICE TODAY?

The price of Bitcoin is currently sitting at $39,685.89 (£28,117.49), down from its all-time high of $64,621 on April 14 (£45,616).

At the time of writing, it's down by 0.70 per cent in the last 24 hours, however yesterday Coindesk reported that it had fallen by more than 24 per cent in the 24 hours previous.

It comes after the cryptocurrency plunged last week as Elon Musk said Tesla would no longer accept Bitcoin payments to buy cars.

The founder cited the harmful effects to the environment that comes with mining the cryptocurrency, which is a hugely energy-intensive process.

The price of Bitcoin dropped last month as Turkey banned cryptocurrency payments.

TODAY'S CRYPTO PRICES

WHAT IS TETHER?

Tether (USDT) was originally launched as Realcoin in 2014, but has since changed its name and been updated over the years.

It’s described as a “stablecoin”, which is a type of cryptocurrency that aims to keep crypto values stable.

Tether aims to do this by pegging the price to a regular “fiat” currency, like US dollars, Euros or the Chinese yuan.

British pounds aren’t currently available, according to its website.

WORLD’S FIRST BITCOIN CHESS TOURNAMENT

The world’s first bitcoin chess tournament, the FTX Crypto Cup, is being held from May 23.

“A cool $100,000 of that is a bonus paid in crypto by new sponsor FTX, the leading cryptocurrency exchange.

“Fans will be able to track the prize pot’s value in real-time throughout the broadcast to see how it fluctuates,” says a press release.

The tournament is the final major in this season’s $1.5million Meltwater Champions Chess Tour, the richest and most prestigious online chess event in history.

World Champion Magnus Carlsen will take centre stage as the current tour leader, but will face stiff competition in a field of 16 star names.

CRYPTO MISTAKES

There are five common mistakes most investors make according to 

• Not Identifying Your Investor Profile Before Starting to Put Money into the Game
• Not Having a Clear and Thorough Plan
•  Not Knowing What You Are Doing
• Having No Patience to Deal with the Movements in the Crypto Market
• Never Diversifying the Portfolio

BITCOIN RECOVERS SOME MARKET SHARE

Bitcoin has regained some ground after crashing to four-month lows but was weighed down by concerns over tighter regulation in China and unease over the extent of leveraged positions in the cryptocurrency world.

Bitcoin, the biggest and most popular cryptocurrency , rose 8.75% to touch $40,000, after plunging 14% on Wednesday to its lowest since late January.

Smaller rival ether was up 6.6% at $2,600 at 06:30am (GMT), but in extremely volatile trading after its 28% tumble on Wednesday.

Wednesday’s declines in both digital assets were their biggest daily percentage moves in more than a year as investors rushed to exit trades that until recently were heartily outperforming traditional markets such as stocks and bonds.

The latest catalyst was a statement by Chinese financial industry groups on Tuesday banning institutions from offering cryptocurrency registration, trading, clearing, and settlement.

WHAT ARE THE RISKS OF CRYPTO INVESTMENTS?

Financial Conduct Authority (FCA) has warned people about the risks of investing in cryptocurrencies.

• Consumer protection: Some investments advertising high returns based on cryptoassets may not be subject to regulation beyond anti-money laundering requirements. 
• Price volatility: Significant price volatility in cryptoassets, combined with the inherent difficulties of valuing cryptoassets reliably, places consumers at a high risk of losses.
• Product complexity: The complexity of some products and services relating to cryptoassets can make it hard for consumers to understand the risks. There is no guarantee that cryptoassets can be converted back into cash. Converting a cryptoasset back to cash depends on demand and supply existing in the market. 
• Charges and fees: Consumers should consider the impact of fees and charges on their investment which may be more than those for regulated investment products.  
• Marketing materials: Firms may overstate the returns of products or understate the risks involved

WHY ARE THE CRYPTOCURRENCY MARKETS DOWN?

Crypto markets surged over the past year as interest increased among individual investors and well-known companies in the financial world.

Well-known mainstream companies such as PayPal, Mastercard and Facebook have backed cryptocurrencies.

Surges also came off the back of Coinbase going public in the US - it is the first cryptocurrency exchange to list its shares on a stock exchange.

It was seen as a major milestone and another sign of cryptocurrency becoming mainstream but its shares are now trading below the initial debut price.

The first signs of trouble came last week, when Elon Musk released a statement saying Tesla would no longer be accepting Bitcoin for purchasing vehicles.

The Tesla CEO has previously caused currencies to spike in value by mentioning them on Twitter or in press statements.

WHAT CAUSED MUSK’S CHANGE OF HEART?

 Bitcoin’s price fell to a three-month low, following Elon Musk’s tweet and only slightly rebounded when he confirmed Tesla had not sold it holdings.

Nic Carter of Castle Island Ventures, a blockchain-focused investor told the: “The idea that is prevailing in the community is that he had a change of heart because he didn’t want any PR issues or political impediments.

“There’s no new information that’s surfaced. It’s pretty shocking to see him promulgate these very discredited talking points.”

WHAT IS CARDANO?

Cardano is a cryptocurrency that uses blockchain, making it difficult to be hacked.

It was launched in 2017 and set up by Charles Hoskinson, who was one of the eight co-founders of Bitcoin rival, Ethereum.

Every time someone buys or sells the cryptocurrency, it’s permanently recorded on the platform’s blockchain.

Unlike some other cryptocurrencies, the blockchain is more transparent so anyone can see it. It’s managed by the Cardano Foundation.

The “altcoin” has been designed to make sure that investors can have some say in how the currency is run.

It means those who own Cardano have the right to vote on any proposed changes to the software, reports .

WHAT IS BITCOIN?

Bitcoin got you baffled? Here’s what you need to know:

• Bitcoin is a virtual currency
• It’s traded between people without the help of a bank
• Every transaction is recorded in a public ledger, or “blockchain”
• Bitcoin is created by mining
• Mining involves solving difficult maths problems using computer processors
• Bitcoin can be traded anonymously, which can make it a popular way of funding illegal activities
• The value of Bitcoin fluctuates wildly
• Bitcoin is one of many different cryptocurrencies but by far the most popular

RISK OF CRYPTOCURRENCIES

Investing in cryptocurrencies is essentially gambling and there are no guarantees that you will see what you pay in go up in value.

Cryptocurrencies are VERY high risk and a speculative investment, with limited track records and no underlying value.

There is also no guarantee that you can convert crypto assests back into cash, as it may depend on the demand and supply in the existing market.

If you’re planning to invest in newer cryptos, keep in mind these are riskier than others, such as Bitcoin, and would make you more open to fraud.

Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown said: “Investors should treat trading in cryptocurrencies with extreme caution, and dabble at the edges of their investment portfolio, only with money they can afford to lose.”

CRYPTO TOKEN

Shiba Inu coins are one of the latest cryptocurrencies to hit the market – we round up five things you need to know.

It comes as crypto fans are on the hunt for the next success story to follow Bitcoin.

Buying cryptocurrencies and decentralised finance tokens, as well as stocks and shares, is a risky business.

Investing is not a guaranteed way to make money, so make sure you know the risks and can afford to lose the money.

Cryptocurrencies are also highly volatile, so your cash can go down as well as up in the blink of an eye.

As always, you should never invest in something you don’t understand.

WHAT IS CHIA?

A popular cryptocurrency created by BitTorrent inventor Bram Cohen, Chia is described as “green money for a digital world”.

Chia launched last week and has already become popular in some countries in Asia, such as Vietnam and China, reports the .

“Instead of consuming massive amounts of electricity… proof of space leverages the over-provisioned exabytes of disk space that already exist in the world today,” Chia claims.

WATCH: WHAT IS DOGECOIN?

BITCOIN PIZZA DAY IS THIS SATURDAY

This Saturday marks a special occasion that may improve the mood of the cryptocurrency world after a heavy week… it is Bitcoin Pizza Day!

The annual celebration commemorates a US programmer, Laszlo Hanyecz, becoming well known in crypto circles after trading 10,000 bitcoins for two pizzas on May 22, 2010. 

The date is now celebrated in the crypto calendar as “Bitcoin Pizza Day.” In today’s crypto market, Hanyecz’s pizza pocket money would now be worth £305,000,000 – that’s over 30 million pizzas – or one very expensive pizza. 

WHAT IS YEARN FINANCE?

Yearn Finance is a cryptocurrency, and its coins are referred to as YFIs.

It’s also a decentralised currency – which is a very complex notion, but essentially aims to disrupt the finance world to enable people to follow and lend in peer-to-peer networks, without needing a bank.

It was launched in February 2020 according to CoinMarketCap, and was founded by Andre Cronje.

There is reportedly a fixed supply of YFI tokens. 

Around 30,000 coins are in circulation.

WHAT IS CHINA’S HISTORY WITH CRYPTOCURRENCY?

China’s cryptocurrency ban isn’t the first time the country has restricted its digital transactions.

It closed its local cryptocurrency exchanges in 2017 – which at the time dictated 90% of global bitcoin trading.

In June 2019, the People’s Bank of China issued a statement saying it would block access to all domestic and foreign cryptocurrency exchanges and Initial Coin Offering websites.

The aim was to clamp down on all cryptocurrency trading with a ban on foreign exchanges.

Now China has announced crackdown on cryptocurrency transactions.

BITCOIN RECOVERS SOME MARKET SHARE

Bitcoin has regained some ground after crashing to four-month lows but was weighed down by concerns over tighter regulation in China and unease over the extent of leveraged positions in the cryptocurrency world.

Bitcoin, the biggest and most popular cryptocurrency , rose 8.75% to touch $40,000, after plunging 14% on Wednesday to its lowest since late January.

Smaller rival ether was up 6.6% at $2,600 at 06:30am (GMT), but in extremely volatile trading after its 28% tumble on Wednesday.

Wednesday's declines in both digital assets were their biggest daily percentage moves in more than a year as investors rushed to exit trades that until recently were heartily outperforming traditional markets such as stocks and bonds.

The latest catalyst was a statement by Chinese financial industry groups on Tuesday banning institutions from offering cryptocurrency registration, trading, clearing, and settlement.

HOW TO AVOID BEING A VICTIM OF A CRYPTO SCAM

Crypto expert Adam Morris, co-founder of , has offered how to spot a scam and keep your money safe. 

He said: “People should always be wary of platforms offering huge returns.

“If it sounds too good to be true, it most likely is. Never send your money or cryptocurrency to a platform you don’t completely trust. If you do some quick research you should be able to gauge online how reputable a company is.

“Even if you see big names like Elon Musk supposedly endorsing the investment, do not take this at face value.

“Scammers are so successful because they use recognisable and trusted names to dupe people into believing it’s a sound investment when really these names have no association to it at all.”

WHAT HAS CHINA SAID ABOUT CRYPTOCURRENCY?

China has banned financial institutions and payment companies from providing services related to cryptocurrency transactions.

They have also warned investors against speculative crypto trading.

Under the ban, these institutions, like banks and online payments channels, must not offer clients any service involving cryptocurrency.

This includes registration, trading, clearing and settlements - but they have not barred individuals from holding cryptocurrencies.

Crypto markets surged over the past year as interest increased among individual investors and well-known companies in the financial world.

HOW LOW COULD BITCOIN GO?

After its spectacular drop in price when China announced a crackdown on cryptocurrency transactions, what does the future hold for Bitcoin?

Financial experts believe it will return to the 200-day moving average of $40,000 rather than jumping up to just under $44,000 like recently.

"Lower highs and lower lows" are expected in the next year, despite the cryptocurrency still being 300% better off than this time last year.

Strategist David Grider said: "We don’t know the future, but we think odds are we’re close to the bottom and don’t want investors to ‘panic sell’ here."

WORLD’S FIRST BITCOIN CHESS TOURNAMENT

The world’s first bitcoin chess tournament, the FTX Crypto Cup, is being held from May 23.

“A cool $100,000 of that is a bonus paid in crypto by new sponsor FTX, the leading cryptocurrency exchange.

“Fans will be able to track the prize pot’s value in real-time throughout the broadcast to see how it fluctuates,” says a press release.

The tournament is the final major in this season’s $1.5million Meltwater Champions Chess Tour, the richest and most prestigious online chess event in history.

World Champion Magnus Carlsen will take centre stage as the current tour leader, but will face stiff competition in a field of 16 star names.

CRYPTO MISTAKES

There are five common mistakes most investors make according to 

• Not Identifying Your Investor Profile Before Starting to Put Money into the Game
• Not Having a Clear and Thorough Plan
•  Not Knowing What You Are Doing
• Having No Patience to Deal with the Movements in the Crypto Market
• Never Diversifying the Portfolio

WHAT IS EOS?

EOS is the crypto token of the EOSIO platform, the latter which is designed to allow developers to build decentralized apps.

These are digital applications or programs that exist and run on a blockchain or peer to per network of computers instead of a single one.

The aim is to make it as easy as possible for programmers to embrace blockchain technology.

The technology is a kind of database used to record transactions and is at the heart of cryptocurrencies such as Bitcoin.

EOS launched in June 2018, having been developed by the company Block.one.