Meanwhile, the trading week in the European financial markets has come to an end again and America is starting its last day. Unfortunately, the prices of Bitcoin and the main crypto currencies are diving. This while Elon Musk is actually becoming more positive about the largest crypto currency. In short, high time for an update.
With a sudden wave of selling going on across the crypto market, we begin immediately with the update of the latest state of affairs for Bitcoin and other crypto currencies.
At the time of writing, Bitcoin’s price is EUR 29,786.88 ($36,076.49), which is down 8.07% from yesterday, but still well above Tuesday’s price. Most of the crypto market’s other top 25 coins also posted a negative price. On the other hand, hefty gains are also being recorded. Biggest riser is Chainlink (LINK) with 18.77%, but also Cosmos (ATOM) is still recording double-digit gains for the day. Of course, you can follow live cryptocurrencies 24 hours a day and thus all weekend long on the Tradeincrypto.com website.
This is why Bitcoin is suddenly falling
At the time of writing, it is not entirely clear what caused the sudden price drop. As far as we can analyze, there are 3 factors at play. First, it has now been revealed that a petition has been filed in England to ban Bitcoin because the crypto currency could be destabilizing for the economy. Although the petition has not yet gained much traction, investors often become unsettled by such initiatives. Another aspect is that miners continue to sell the coin en masse. Finally, it appears that just before his death, a French programmer left over $500,000 in Bitcoin to far-right American groups. The fact that these groups are involved in the storming of the Capitol is obviously extremely sensitive and this negative publicity does not help either.
Elon Musk more positive about BTC
Although the correction is not unusual, the timing is striking. Elon Musk, who is seen as an important influencer, is actually more positive about Bitcoin. In a Twitter discussion today, he adjusted his critical view of the largest crypto currency in one important aspect. Namely, he acknowledged that the coin does have a preservation function and thus can serve to confirm inflation. This is a hefty step forward for the critical Musk. Many thought that this news would result in a price increase.
This afternoon we saw that a further rise in the price of Ethereum (ETH) depends on the daily rate. For Bitcoin, the medium to long-term outlook is significantly more positive. Indeed, analysts anticipate that this correction is actually healthy to keep Bitcoin at record prices.