Bitcoin (BTC) prices fall 10% after Elon Musk says prices seem high

Bitcoin soared on Tuesday, reaching a milestone of $ 50,000 at a record $ 50.602.

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Bitcoin Slided on Monday and then paused that stunning rally Elon Musk the price is”Seems expensive.. “

According to Coin Metrics data, the world’s most valuable cryptocurrency fell more than 10% on Monday morning to a price of $ 51,993. At some point Bitcoin fell below the $ 50,000 level to $ 47,700.

What was behind the fall in Bitcoin on Monday was not immediately clear. on Saturday, Tesla The CEO said Bitcoin and rival token ethers seem to be too expensive. Bitcoin recovered to over $ 58,000 on Sunday, but then reversed the course.

As of 10:25 EST, Bitcoin was trading about 8% lower at a price of $ 53,375. It is worth pointing out that price fluctuations above 10% are not uncommon in cryptocurrencies.Bitcoin Once it rose to almost $ 20,000 The following year, in 2017, before reducing 80% of its value.

US Treasury Secretary Janet Yellen warned on Monday that Bitcoin is a “very speculative asset” and said investors were worried about losing money.

“This is a very inefficient way to make transactions, and the amount of energy consumed in processing those transactions is staggering,” said the former Federal Reserve Chairman.

Digital coins have risen by more than 80% so far this year. Bitcoin reached $ 1 trillion in market value for the first time last week, according to CoinDesk. It is currently below that level. Tokens are backed by news that major Wall Street banks and Fortune 500 companies are warming up to cryptocurrencies.

Recently musk Came out as a believer in BitcoinHe called it “good” and said he thought it was “on the verge of being widely accepted by traditional financial professionals.”

Earlier this month, Tesla said it would buy $ 1.5 billion worth of Bitcoin and accept cryptocurrencies to pay for its products. According to Dan Ives of Wedbush Securities, electric car makers have made about $ 1 billion in paper profits from their investment in Bitcoin.

Tesla is “on track to make more money from investing in Bitcoin than from selling EVs (electric vehicles) in all of 2020,” Ives estimates in a memo released Saturday. did.

Bitcoin is also attracting attention from mainstream investors, as it is recognized as a store of value similar to gold. Bitcoin bulls sought to argue that investors need to add cryptocurrencies to their portfolios to hedge potential inflation.

But skeptics are not convinced. JPMorgan analysts said in a memo last week that Bitcoin is an “economic sideshow” and that the rise of digital finance, not Bitcoin, is “a true story of financial change in the Covid-19 era.” It was.

Bitcoin (BTC) prices fall 10% after Elon Musk says prices seem high

Source link Bitcoin (BTC) prices fall 10% after Elon Musk says prices seem high

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