It isn’t bitcoin if it’s not unpredictable. Valuation for bitcoin reportedly dropped again to under $33,000. Previously, bitcoin’s valuation had fallen twice due to involving Chinese authorities and US Treasury. Tesla CEO’s, Elon Musk, recent tweets on bitcoin also affected the cryptocurrency’s valuation. This time, a weekend selloff is suspected to drive the price for bitcoin lower.
Coin Metrics Data noted that bitcoin declined around 13% to $32,915.83 by 9:37 a.m. ET, according to Coin Metrics data. The last trading for bitcoin was valued at $33,665.89.
Bitcoin attacked by Elon Musk, China authorities, and US Treasury consecutively
Noted from CNBC, Tesla’s recent halt on accepting bitcoin for vehicle purchases may have triggered a bitcoin selloff. Additionally, Musk’s ambiguous tweet sent off mixed messages upon his position on bitcoin. Some thought that Tesla might have sold some of its bitcoin holdings, which soon later debunked by the company itself.
CIBC analyst Stephanie Price commented, “The asset class continues to be highly volatile, with the potential of significant price movements resulting from a single tweet or public comment.”
JPMorgan report’s further revealed that institutional investors have started to shift from bitcoin to gold. This leads to a big question on institutional support for bitcoin.
Cryptocurrencies have been under constant attacks in the past few weeks. First, Chinese authorities’ decision to tighten crypto mining and trading regulations are making investors hesitate to continue their investment. Not only China, US Treasury also announced to review crypto compliance with the IRS, driving prices lower.
Coin Metrics noted that bitcoin’s over 30% stumble took the valuation to nearly $30,000 on Wednesday, the lowest since late January. In comparison, bitcoin’s peak in April reached near $65,000.
“Even with this week’s selloff cryptocurrencies have had an incredible run over the last year,” Price said.
Read also: Yay! Bitcoin Price Raised to US$40,000
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