The price of Bitcoin, the world’s leading cryptocurrency, crashed by more than 50 per cent during one week in May, and continued to fall in June, shedding the gains made from its remarkable rise since the beginning of the year. What might explain the price plunge? First, a tweet from Elon Musk on 12 May stated that Tesla would no longer accept Bitcoin for vehicle purchases owing to concerns around fossil fuel energy consumption – a 180-degree turnaround from his position at the start of 2021.
Second, Andrew Bailey, the governor of the Bank of England, warned in May this year that cryptocurrencies were a danger to the public, saying: “I’m sceptical about crypto assets, frankly, because they’re dangerous and there’s a huge enthusiasm out there.” (Last month, the UK’s financial regulator, the Financial Conduct Authority, banned Binance, a major crypto exchange, from regulated activity in the UK.)
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