On Sunday night, Eastern Time, cryptocurrencies rose sharply, and Bitcoin broke through $39,000 for a short time, approaching the $40,000 mark again. Ethereum once rose 7%to $2,545. Prices of other small currencies also rebounded sharply.
This big increase also caused 56,000 people to liquidate their positions. The entire network could liquidate 2.9 billion in 24 hours, and short positions suffered heavy losses.
This price increase is attributed to Musk’s statement
On the news, Tesla CEO Elon Musk posted a response on social media”Manipulating the price of Bitcoin” means that Tesla (previously) sold about 10%of its Bitcoin holdings. This is to test the liquidity of Bitcoin and confirm that it can be settled easily without disturbing the market.
As for Tesla’s cancellation of Bitcoin payment after it originally supported Bitcoin, Musk said that when it is confirmed that miners use a reasonable proportion of clean energy (about 50%) and the future trend is positive, Tesla will Bitcoin transactions will resume.
Musk has always been the main driver of cryptocurrency. In February 2021, Tesla purchased $1.5 billion worth of bitcoin and began accepting it as a payment method for car purchases. It didn’t stop until mid-May. . After the announcement of the news, Bitcoin rose, and Musk also affected the cryptocurrency due to multiple posts on social media stock price’s behavior has been criticized many times. The outside world believes that Tesla is also suspected of high-level cashing. Since suspending Tesla’s plan to buy cars with Bitcoin, he has begun to be critical of Bitcoin.
The netizens have complained about this, thinking that Musk’s statement is a joke, and put investorsBeing a leek, I suggest that he make fewer comments related to Bibit in the future.
Where will Bitcoin go in the future? Analysts are very divided
JP Morgan Chase strategist Nikolaos Panigirtzoglou in a report Writes that in recent weeks, the return of Bitcoin the futures market to the spot premium is a pointerbear market is a negative sign, and Bitcoin’s relatively low proportion of the total encrypted market capitalization is also a worrying trend.
According to CoinGecko data, Bitcoin currently accounts for 42%, down from about 70%at the beginning of the year. JPMorgan Chase strategists said that Bitcoin’s share may need to rise to 50%to end the current bear market.
Bitcoin fund founder and CEO of Osprey, said , Although Bitcoin has not widely established itself as a payment mechanism, but with the government’s support of digital currencyIntroduced, its role as a store of value may only be strengthened.
King predicts that Bitcoin”bull market” will continue.”We think (Bitcoin price) will be higher,” King said.”What I want to say is that it will definitely break through 40,000 and then continue to rise. My view is bullish. But in any case, from a medium to long-term perspective, This is a good buying opportunity.”
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