Bitcoin increased by almost 50% touching $58,000, following Elon Musk’s embrace of the cryptocurrency earlier this month. However, his cold shoulder over the weekend has brought down the largest digital asset.
It was down by almost 5.6% after jumping as much as 17% earlier. In a matter of few hours, the cryptocurrency saw a dip of $8,000, bringing its value below $50,000. What caused this was Elon Musk’s tweet regarding the digital currency’s price, wherein he had shown his concern regarding Bitcoin’s high price.
Those not new to the world of crypto, are well aware of Elon Musk’s far-reaching impact on the crypto market. His one tweet can either take a cryptocurrency up or bring it down in a matter of few hours.
Mati Greenspan commented on Musk’s impact on the digital asset’s price moves, referring to his influence on market prices as an incredible power. Greenspan is an investment specialist who is the founder and chief executive officer of Quantum Economics, providing a range of financial services.
Janet Yellen, Treasury Secretary, who has also been a critic of the cryptocurrency for a very long time also offered blatant warning. At the New York Times conference, he warned that the crypto was an extremely inefficient way of conducting transactions.
Other billionaires are also pondering over Musk’s latest comments on the high prices of crypto like Bitcoin and Ethereum.
Bill Gates, co-founder of Microsoft Corp., in an interview, told that he is not a fan of Bitcoin for environmental reasons as it uses a lot of energy. He also commented on people who might not have as much money to spare but give into the fever. He added that if anyone had less money than Elon Musk then they should think before investing in the asset.
Bitcoin has been in news a lot lately, mostly for its upward trend and record-breaking prices and now for its sudden price drop. Quite a few factors propelled the world’s largest cryptocurrency this year. Amongst these was primarily, Tesla’s announcement of purchasing $1.5 billion Bitcoins and that it would start accepting the digital asset for its products. Institutional investors have gone on to state that Bitcoin is an appealing alternative to the dollar and gold.
This month alone, Bitcoin saw a jump of more than 60%, inviting commentary that the run-up is excessive. Last week the asset reached an all-time high and came close to $59,000.
There is a speculation that the asset’s weekend swings are navigated by individuals trading it at home. Thus, there is a possibility that prices fell on Monday as crypto dealers following usual business hours, responded to Musk’s tweet late.
New and old Bitcoin investors should be ready for the asset’s price volatility. JPMorgan Chase & Co., an American multinational investment bank has cautioned about Bitcoin’s declining liquidity.