Bitcoin (BTC) Tanks 6% After Elon Musk’s Tweet Suggests Parting Ways With the Cryptocurrency
Elon Musk has been playing around for a while now with the Bitcoin community. Earlier today, Elon Musk posted a breaking heart emoji with the Bitcoin hashtag while sharing a breakup meme.
This has potentially sparked fear within the Bitcoin community that the billion will soon part ways with the world’s largest cryptocurrency. The Bitcoin (BTC) price sliced 6.66% today slipping under $37,000.
At press time, BTC is trading at a price of $36,673 with a market cap of $686 billion. This Bitcoin price correction has created a major pressure in the overall crypto market with almost all of the top-ten altcoins correcting anywhere between 7-10%.
Earlier this year, Musk’s electric car company Tesla announced $1.5 billion worth of Bitcoin purchase. Shortly after that Tesla also started accepting Bitcoin payments for a very short period of three months and suspended them citing environmental concerns a few weeks back.
Following Tesla’s pullback, the Bitcoin price came crashing down in May leading to speculations whether if Tesla has offloaded its holdings. While Tesla hasn’t disclosed anything yet and said that it will continue to hold its BTC, Elon Musk’s frequent dabbling with the crypto has put investors on the edge.
Elon Musk is well-known for his whimsical stand in Bitcoin and cryptocurrencies in general. While on one end Musk remains critical of BTC, the billionaire investors continues to promote meme coins like Dogecoin (DOGE) created for nothing but fun purpose.
Bitcoin’s sharp correction over the last month has forced many of the short term investors to book profit. Whereas players who have been in the crypto space are easily able to digest this volatility. The BTC price has corrected nearly 50% from its all-time high of $64,000 in April 2021.
Well, some experts thing that Bitcoin can correct further from the current levels. However, Bloomberg recently published its Crypto Index Report for the month of June 2021. In its reports, Bloomberg mentions that Bitcoin is more likely to shoot towards $100,000 rather than correcting to $20,000.
Mentioning that Bitcoin fundamentals continue to remain intact, Bloomberg analyst Mike McGlone notes: “The Bloomberg Galaxy Crypto Index (BGCI) signals a bull market at a discount to start June, as we see it. Bitcoin has corrected about 50% from its 2021 high and appears to be building a base around $30,000. This level is near last year's ending price and the 12-month moving average. Up about 130% in 2021, BGCI is similarly discounted from its peak, which stretched over 250% in early May. Many of the speculative excesses have been removed and the fundamental footings are intact".