Bitcoin remains under pressure after Elon Musk’s comments
Bitcoin plunged again on Monday after the losses it suffered last week, causing the currency…
Bitcoin price headed lower once again to a low of just over $37,000, as on-chain data indicates that coin holders have started selling some of their holdings after the price crossed the $40,000 mark.
The leading cryptocurrency continues to gradually lose its value with another drop in price to around $37,000, and most altcoins are also struggling with Ethereum dropping below $2,400 and Binance (BNB) close to dropping below $350.
Over the past week, Bitcoin has gained about 3.81%, with the cryptocurrency reaching a high of $41295.27 and a low of $34728.19.
The leading cryptocurrency has generally fallen over the past three months, after hitting an April high near $65,000, dropping to its current price of $39124.35.
Just a few days ago, the situation with the primary cryptocurrency looked even more promising, with the asset rising above $40,000 for the first time in nearly a month and touching the $41,000 level.
However, the coin failed to sustain the high price streak and started to lose steam rather quickly, dropping below $40,000 initially, but the bears continued to pressure, bringing another drop to around $37,000 during today’s trading.
Although the cryptocurrency initially bounced back to the $40,000 level, it reversed course once again, this time with the decline being even worse as Bitcoin fell to just over $37,000.
Although a few hundred dollars have since recovered, Bitcoin’s market cap is struggling to stay above $700 billion, but its dominance is still around 45%.
Over the past weeks, the most popular cryptocurrency has rebounded sharply after testing the low 30k area several times, as the selling appears to have been exhausted, meanwhile, there have been a number of positive catalysts such as the new purchase by MicroStrategy and El Salvador’s acceptance of the leading crypto As legal tender and positive comments from Paul Tudor Jones and Elon Musk.
The most recent of these developments included Musk’s announcement on Twitter that Tesla will resume allowing bitcoin transactions when there is confirmation of clean energy use by miners with a positive future trend.
The leading cryptocurrency traded above $37,000 after the coin failed to push to $40,000, due to a strong rally in the US dollar. Interest rates sooner than expected.
Bitcoin gained significant adoption during 2020 and the beginning of this year, with traditional banks and institutional investors entering the market in droves, however, there is still an ongoing debate about Bitcoin’s status as an asset class.
Despite the debate over the digital currency and its status as an asset class, its price has risen since it was first launched in 2009, the increase in value coming despite sporadic bear markets such as those that occurred in 2018 and 2019.
Recently its price dropped to trade above $30,000 again, the coin has struggled to cross the $40,000 mark in recent weeks but is still nearly 40% below its all-time high of $65,000.
Professional Trader and Analyst, economist in Financial and Forex market since 2004.holds an MBA from the American University in Egypt. Mohammed works as an economic writer and technical & fundamental analyst for many international Forex and financial trading companies in both English and Arabic on a daily basis.
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