Bitcoin is bouncing back. The crypto king has reclaimed its throne, and is closing in on $40K as the altcoin market stagnates.
El Salvador’s approval of Bitcoin as legal tender on Thursday could be credited with the turnaround, boosting market sentiment and sparking a wave of interest from politicians across Latin America. Then on Sunday, Twitter trickster Elon Musk aided the recovery, claiming once again that “Tesla only sold around 10% of holdings to test liquidity” and that the car company will allow Bitcoin transactions again when miners have improved their green credentials.
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Bitcoin has drifted sideways this week; caught between waves of volatility as bad news from China and tweets from Elon Musk rock the market back and forth.
Prices approached $40K on Friday, before Musk tweeted a broken heart emoji with the Bitcoin logo, triggering a 7% drop. Fears over his influence on the market were then calmed as he changed his profile picture to a laser-eyed Bitcoin anime figure, but the recovery was blocked by news that Chinese social media platform Weibo had suspended crypto influencer accounts.
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Bitcoin is searching for firm footing around $35K after another week of volatility has washed over the market.
The leading cryptoasset hit lows above $33K on Sunday before bouncing, with bullish momentum supported by some of the loudest voices in institutional investing. Ray Dalio admitted to owning Bitcoin at Consensus last week, saying he’d prefer holding it over bonds in the event of inflation. Meanwhile, famed investor Stanley Druckenmiller said that he thinks “Bitcoin has won the store of value game.”
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Anxiety has washed over the crypto market, with cascades of selling push prices down to the same levels as before Tesla announced its Bitcoin treasury allocation.
Tweets from Tesla CEO Elon Musk have been widely blamed for giving the market jitters, which turned to full-blown fear as China called for a crackdown on Bitcoin mining and trading. The leading cryptoasset dropped to hit nearly $30k on the news, before bouncing back to over $35K.
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Fear is gripping the crypto market after comments from Tesla billionaire Elon Musk sparked a 20% sell-off for Bitcoin.
Prices fell to a low of $42K on Monday as the billionaire voiced concerns about the environmental impact of Bitcoin mining, before hinting at a sale of Tesla’s treasury allocation. Then, as irate bitcoiners publicly canceled their cybertruck orders in protest, he clarified that “Tesla has not sold any Bitcoin” — triggering a bounce back towards $45K.
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