Bitcoin Still Under Pressure After Elon Musk Comments & China Decisions

Bitcoin tumbled again on Monday (May 17) after last week's losses, with the currency losing around 10,45% in a single day.

Bitcoin tumbled again on Monday (May 17) after last week's losses, with the currency losing around 10,45% in one day and testing the $42,000 level, then rebounding higher to trade around $44,000.

As usual in the crypto market, the performance of Bitcoin It determined the direction most altcoins would take, and as a result, all of the top ten leading cryptocurrencies fell apart, with the exception of Riplo USDT.

These losses come after Tesla CEO Elon Musk backtracked on his previous efforts to accept bitcoin as a future payment method for his products. Some analysts claim that Musk is a currency manipulator, calling him a fraud.

Huge losses within a month

Since October 2020, the Bitcoin currency has continued its upward series of gains that recorded records, the last of which was on April 14, when the currency recorded its highest level ever at $64,863.10, amid strong bullish expectations that its momentum will continue until the end of the year.

Bitcoin

While the currency struggled to maintain this bullish momentum, it quickly made a sharp bearish correction and traded above the $50,000 level for a few days, before falling below it and trading as low as $47714.66.

However, the coin quickly gained momentum and broke through $50000.00 and remained bullish until a tweet from “Elon Musk” stimulated a new downtrend for it, dropping Bitcoin from $51,330 to $42,981 losing towards 10,45%, its lowest level since February 9, and since its peak on April 14 So far the coin has lost about 35% of its value.

The announcement by the leading electric car maker Tesla earlier that it would start accepting bitcoin as a payment method was one of the main bullish drivers of the currency in the first quarter of this year. This encouraged many big companies to follow the Tesla approach and invest in cryptocurrency, as they were worried about being left behind.

Musk's recent comments about backing off Bitcoin support are based on the belief that cryptocurrency mining is based on fossil fuels, while many mocked Musk's tweet, citing the scale of discrepancies in Tesla battery production.

Bitcoin records the highest outflows

CoinShares released a report on May 17 indicating that Bitcoin lost $98 million, and that funds were only from Bitcoin investment products, and the outflow is reported to be 0.2% of AUM.

According to the report, all other digital investment products recorded inflows totaling $48 million, as such, the company concluded that investors are diversifying their portfolios by investing in coins with upcoming developments such as Cardano (ADA) and Polkadot (DOT) with inflows of They reach $6 million and $3.3 million, respectively.

Bitcoin has a very important week ahead, can it recover and defend the recent price drop? The bull market is in danger, Musk's recent comments may reduce companies' flows to the crypto market.

 

Mohamed Abdel Khaleq

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