Bitcoin news LIVE: Cryptocurrency market bounces back as CluCoin price rockets 'through speculation'

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BITCOIN has bounced back above $40,000 after it yesterday suffered one of its worst crashes since last year.

The crash on Wednesday was driven by China banning financial institutions from offering crypto related transactions, and warned investors against speculative trading in them.

As such bitcoin fell below $31,000 – less than half the all-time high price that it reached in mid April – before recovering to around $40,000 today.

And the cryptocurrency is still ahead of Tesla, as well as payment giants like Mastercard, PayPal and Visa.

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

But Cardano, Ethereum and dogecoin all remained steady following the billionaire's announcement.

Read our cryptocurrency live blog below for the very latest updates…

  • Caroline Mortimer

    NEW CRYPTO

    Investors are being warned about a new cryptocurrency called CluCoin as its price is “pushed up by speculation”.

    The cryptocurrency launched yesterday and it has already hit a market cap of almost $136million (£96million), according to the PooCoin app.

    The cryptocurrency is so new that it’s not yet listed on any major data tracking websites, such as CoinMarketCap or Coindesk.

    CluCoin is a meme token, which claims to support charities with some of the money made from its fees.

    However, Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown told The Sun its use case is “far from convincing”.

  • Caroline Mortimer

    WATCH: A BRIEF HISTORY OF BITCOIN AND ITS VOLATILITY

    Brief history of Bitcoin and its market volatility

  • Caroline Mortimer

    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.

  • Caroline Mortimer

    WHAT IS INTERNET COMPUTER?

    Internet Computer is a crypto token and blockchain innovation that launched on May 10.

    It uses smart contracts, similar to the Ethereum blockchain, to power applications and platforms.

    The aim is for developers to build websites and other internet services, like social media or messenger applications, using the technology.

    It means they won't need to use big companies like Amazon, Google or Facebook.

    Blockchain technology, which can seem very complicated, is a kind of database used to record transactions.

  • Caroline Mortimer

    WHAT IS THE BITCOIN 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.

  • Caroline Mortimer

    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.

  • Caroline Mortimer

    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 Telegraph: “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.”

  • Caroline Mortimer

    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 Coinmarketcap.

  • Caroline Mortimer

    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.”

  • Joseph Gamp

    HOW TO AVOID BEING A VICTIM OF A CRYPTO SCAM

    Crypto expert Adam Morris, co-founder of Crypto Head, 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.”

  • Joseph Gamp

    WHAT IS THE BITCOIN 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.

  • Joseph Gamp

    TODAY’S CRYPTO PRICES

  • Joseph Gamp

    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.

  • Joseph Gamp

    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.

  • Joseph Gamp

    CRYPTO MISTAKES

    There are five common mistakes most investors make according to Finance Magnates.

    • 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
    • Joseph Gamp

      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.

    • Joseph Gamp

      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 Telegraph: “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 Coinmarketcap.

      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.”

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