Bitcoin and other cryptocurrencies are having a tough time due to the increased volatility of the market. Just one tweet of Elon Musk changed the entire course of the market. And at the same time, it also brought down the price of Tesla’s shares significantly as much as that Elon lost $15 billion and the tag of the “world’s richest person” at the same time. It also put a halt (though temporary) to the long ongoing rally of Bitcoin. After Musk commented on the price of Bitcoin, it dropped from $58,000 to below $45,000 for a while and back over $46,000 again.
Bitcoin and other cryptos are struggling.
If you think BTC is the only one that has been struggling due to the recent tweet, god, you are wrong. Etherium lost more than 25% of its value. It wants trading above $2000 before the tweet, and after that, the prices went to as low as $1350 and now has recovered back to around $1600. Many altcoins are performing well during this time, but still, the markets as a whole are down. The market’s increased volatility has also made many new retailers and investors wary about investing in the currency.
At the same time, some firms and institutions have taken full advantage of the dip and are loading up on their Bitcoin holdings. Two such companies are Square and Microstrategy. While Square invested $170 million in BTC during the dip, Microstrategy invested $1 billion. Twitter and Reddit were trending with Buy the dip tweeted during this time. And many traders also made good profits by leveraging the volatility of the cryptocurrency.
Is it just silence before the big move?
Remember when Bitcoin made an all-time high of $44,000 and slipped below $40k and even $30k for a while, we all thought that the cryptocurrency’s rally is up. But that didn’t happen, and in fact, after the cool-off happened, the price of the cryptocurrency surged drastically. This was also fueled by the news of Tesla’s $1.5 billion bitcoin investment. When the news was out, the price of the currency increased by almost 20% in two days. So, if we consider it that way, we are just a push away before the momentum moves in the right direction again.
It does seem to be silent before the big move that is going to happen. Or, as they say, it is the darkest just before sunrise. I think that now is the time to load up with as much as possible because soon, new highs are incoming. But do note it is not financial advice, and you should do your own research before making any investment decision. (On a quick note, Bitcoin is still almost double the price of last year)
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Also Read: JP Morgan advises clients to include 1% Bitcoin in their portfolio.
