The corrective move that started on Monday in the cryptocurrency market has led bitcoin to plummet about 12% this Tuesday, when the most traded of the crypto currencies has lost $ 50,000, a level that it struggles to recover, after a new verbal intervention by the founder of Tesla, Elon Musk. The tycoon who instigated the rally of Satoshi Nakamoto’s creation to a milestone above $ 58,000 on Sunday, has again been the catalyst for a broad profit taking that has also dragged other cryptos such as Ethereum, which falls about 13% to $ 1,600.
In a recent tweet, the founder of the electric vehicle company noted that the prices for Satoshi Nakamoto’s creation “seem high”, after calling them a “less silly” version of cash. “This seems to have been taken by some as a signal to make cash,” says Craig Erlam, an analyst at Oanda. Musk has seen his influence grow in the crypto space and Tesla’s position has only increased it in recent weeks. speculators are clearly hanging on his every word“.
An email saying you have gold is not the same as having gold. You might as well have crypto.
Money is just data that allows us to avoid the inconvenience of barter.
That data, like all data, is subject to latency & error. The system will evolve to that which minimizes both.
– Elon Musk (@elonmusk) February 20, 2021
The cryptocurrency is up more than 90% since the beginning of January, as started the year under $ 30,000, However, bitcoin has a history of strong price swings and has fallen sharply on several occasions since its creation in 2009. Without going any further, last month, when it broke the $ 40,000 barrier in early January, it triggered a downward trend that made it fall to $ 30,000 at the end of the month.
“The recent history of bitcoin shows us that each time a new upward cycle begins, it enters a parabolic movement that will last a year and then correct / drain the rises for a period that will last two years,” he says. José María Rodríguez, analyst at Bolsamanía. “In this period, the price corrects about 80% of the previous rise and then a new ‘halving’ arrives and from there, little by little, a new upward cycle is built. The current upward cycle would still be far from being reached and therefore the possibilities of bitcoin are many ”, he concludes.
The rest of the market has not been immune to the decline and its total value has fallen to 1.5 trillion dollars, from the high of 1.7 trillion on Sunday. Bitcoin’s capitalization has fallen below the trillion dollar mark that it conquered last Friday. The operators too have folded into ethereum, which had touched $ 2,000 this weekend and now corrects about 13%, while trying to hold $ 1,600. As for the other most traded ‘altcoins’, they leave setbacks of more than 10% in litecoin or bitcoin cash.