Is the Bitcoin price drop related to Elon Musk announcement?
For trading experts, technical analysis is a vitally important tool when making any decision to buy or sell a particular stock, currency, or cryptocurrency, moreover, in addition to technical analysis they also tend to consider fundamental variables that intervene or modify the price action.
In any financial negotiation, fundamental analysis is a type of analysis that establishes operative orientations, with the objective of establishing the probable behavior of the price of a given stock, currency or cryptocurrency by monitoring external variables that affect its value.
I wanted to mention in this publication the impact that fundamental analysis has on the price of cryptocurrencies, a little to establish a relationship with the announcement recently made by Elon Musk on the use of cryptocurrencies with the subsequent collapse of BTC prices below 49,000 dollars and that pushed down the entire crypto market.
Fig. 2 Bitcoin in the last week experienced a price decline of nearly 14%. Image captured from: Coingecko.com
For a bit of context, it is worth mentioning that the tycoon and Tesla CEO Elon Musk on his Twitter account, tweeted the following "We are concerned about the rapid increase in the use of fossil energy for Bitcoin mining and transactions, especially coal", and then the crypto market suffered a considerable fall of around 10%.
Another of Musk's remarks was to indicate that "Cryptocurrencies are a good idea... but it can't be at the expense of a great cost to the environment", both statements are extremely captious and reflect a clear intention to affect the cryptocurrency market.
Now, these statements may be nothing more than a well thought out strategy to destabilize the price of Bitcoin, and the entire crypto market in order to seek affordable prices for their investment interests.
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The price of bitcoin seems to plummet more and more the last few weeks have been alarming its behavior for investors keeps them in a great uncertainty because since January 2021 has reported large declines.
Hi @emimoron
Certainly there is a lot of uncertainty, many experts agree that BTC is in a sideways and accumulation zone, more however, I believe that Ellon Musk's recent statements influenced the price behavior.
Best regards, be well.
has total market dominance, for a tweet and put the markets in the red. Many on Twitter repudiate it and CZ tweeted about it.
Yes it's a total manipulation of the market. They can pump and they can dump as they have huge money and have huge influence on the crowd. But overall it's kind of manipulation of the crypto market.
I don't think it's a simple thought from Elon Musk...It affected many people though, but I see it as a good time for buying BTC since it's not at the peak if that makes sense.
Greetings dear friend @lupafilotaxia.
From my humble opinion not only the comments that Elon Musk made affected the BTC market, also the sale of BTC made by his company Telsa for an approximate amount of 272 million dollars, this directly impacted the BTC market.