Bitcoin (BTC) hit its lowest price since Feb. 8 and is struggling to hold on to $ 40,000 – but is Elon Musk’s fault?
Cointelegraph is reviewing other factors working against bitcoin bulls this week. as the market returns to a level some thoughts would never come up again.
The dollar is jumping from lows lasting several months
Elon Musk, CEO of Tesla, criticizes Bitcoin’s energy consumption and is the narrative of the moment everywhereBut this week there are again some classic hurdles for new price increases.
Below that is the strength of the US dollare trying to come back after a streak of bad luck that began in late March.
At the time of this writing The US dollar currency index (DXY), which measures the dollar against a basket of currencies of trading partners, had rallied from long-term support to reverse its downtrend.
DXY has traditionally been inversely correlated with Bitcoinand along with the weakness of the actions, there are the right conditions to stop the bulls’ advance.
Yet, DXY’s Wednesday close was its lowest since January 6th.
Problems arise with technical stocks
In the macroeconomic landscape Tech stocks are suffering, and that’s something Bitcoin usually doesn’t do well either.
Stocks came under pressure after a curious Reuters report on China’s alleged ban on other aspects of cryptocurrency trading.
However, as Cointelegraph and many others found, Nothing new has come from Beijing and the trade associations have only tried to repeat the existing restrictions.
But among the losers in stocks There was MicroStrategy, Bitcoin’s corporate whale, which lost 5.2% that day.TO
The defeat also met Tesla in a somewhat ironic epilogue to Musk’s criticism of Bitcoin. In addition to being downgraded to the third richest man in the world, Musk has led the near-complete disappearance of Tesla’s BTC revenue.
Classic â ???? FUDâ ????
There may be light at the end of the tunnel. A strange tradition shows that after a horror in China Cryptocurrency markets tend to produce large rallies.
When the country officially ceased trading cryptocurrencies in September 2017, Bitcoin and Altcoins hit their all-time highs.
Copycats from other jurisdictions are equally known for their lack of seed dressings. Including the 2019 criticism of Donald Trump and India’s ban earlier this year, which is already being reconsidered.
“Find a way to partake in the fall purchase. Anyway you can”, He said Author Jason Williams to his Twitter followers.
“I’ve seen this many times with Bitcoin. The price is going down, the media are piling up. FUD. The price is going down even more. So [despega]”.
The inflows of currencies, which in the last 24 hours reached their highest level since the fall of March 2020, aroused fear among traders.
“People are scared”, commented Analyst Lex Moskovski on the data.