The recent developments in the cryptocurrency market don’t paint a cozy picture. Bitcoin is still under the pressure of correction, although now it has shown some resistance to the bears. The largest cryptocurrency’s value by its market capitalization hovers at around $37k which is still down from its peak of $64k in April earlier this year. Although Bitcoin has made tremendous gains in 2021, the digital coin is experiencing some headwinds of late.
One of the primary influencing factors behind continuous turbulence in Bitcoin prices is the cryptic tweets of Elon Musk. The owner of Tesla and SpaceX had single-handedly changed the fortunes of Bitcoin when he announced earlier that Tesla EVs could be purchased with the help of digital currency (later, this offer was withdrawn). Tesla itself invested a huge amount of money in Bitcoin. However, with the recent fall in the value of the digital currency, experts fear that Tesla won’t find its investment in Bitcoin worth the cost.
The most recent Tweet from Elon Musk is seen as the end of his relationship with Bitcoin. People are interpreting his latest tweet as a symbol of the break-up between billionaires and Bitcoin. Although the overall tone and tenor of tweets are not very clear, one can still get the feeling of doom and gloom that is being largely prevalent in the tweets. Elon Musk had earlier clarified that his organization had not sold Bitcoin purchased by his company earlier this year.
A short-term correction in Bitcoin prices is expected. However, it is also a fact that the cryptocurrency continues to sustain itself in terms of its fundamentals and long-term prospects. Bitcoin enjoys market dominance, and despite the recent fall in its prices, it still presents an attractive opportunity for investors to earn handsome returns on their investment. There are many enabling factors that should promote the growth of Bitcoin in the coming time. If its fundamentals remain intact, the cryptocurrency will continue to remain strong in the future.