On June 4, the price of Bitcoin fell to $ 36.5 thousand. Thus, the first cryptocurrency over the past day fell by 6%. The asset value fell sharply after it once again failed to overcome the $ 40 thousand mark. According to Coingecko, all assets from the top 10 in terms of capitalization were in the red zone.
Before the start of the last decline in quotations, Elon Musk posted on his Twitter a meme with the word Bitcoin and a broken heart emoji. Later, the entrepreneur added another meme to the entry, which ridicules investors who lost money on a decline in the exchange rate.
Often, after the posts of the head of Tesla and SpaceX, there is increased volatility in the financial markets. For example, after Musk mentioned the children’s video clip Baby Shark, the cost of a token with the same name almost tripled.
On May 19, the Bitcoin rate per day fell by a third, to $ 30 thousand.The next day, its rate again exceeded $ 42 thousand, but could not stay at this level and on May 23 fell to $ 31 thousand.Then the cryptocurrency attempted to overcome the $ 40 thousand mark. May 26 and 27, but to no avail.
Bitcoin set an all-time high of $ 64.8K on April 14. After that, the cryptocurrency quotes went into a decline stage. In May, the monthly income of miners decreased by 15% compared to April. Also last month, a 27% decrease in the hash rate of the asset network was recorded.
The crypto industry is approaching maturity
The digital asset market is extremely sensitive to the entrepreneur’s messages – the press even has the term “Elon Musk effect”, meaning the growth of an asset after the head of Tesla mentioned it.
In May, a tweet from a businessman triggered a 20% increase in the price of DOGE. Earlier in the month, Musk announced that Tesla had suspended Bitcoin sales of electric vehicles. Against this background, the digital gold rate fell to $ 45,700.
However, Bitcoin investors are learning to ignore Elon Musk’s tweets. As we can see, this time the fall in prices was not as significant as we saw earlier, therefore the market does not pay attention to the influence of the billionaire. Bitcoin investors are keen to maintain the price of Bitcoin.
The founder of the Bitcoin exchange Binance, Changpeng Zhao, recommended that users not be manipulated.
Experts believe that soon the cryptocurrency market will grow regardless of the influence of influential people such as Elon. And only obey the influence of regulatory bodies and events in the global and international market. The cryptocurrency industry is approaching maturity, and much of the accumulation of knowledge is central, they note.
The other day, Miami Mayor Francis Suarez recorded an interview on this topic. Suarez said the market needs time to mature and that volatility should disappear on its own.
Whales ignore Elon Musk’s tweets while continuing to buy Bitcoin
Despite the recent market volatility, Bitcoin whales bought another $ 2 billion worth of BTC.
Bitcoin whales seem no longer worried about Elon Musk’s comments on Bitcoin, continuing to increase their reserves.
Bitcoin whales are wallets that hold anywhere from 100 to 10,000 bitcoins. According to analyst firm Santiment, such addresses have taken steps to increase their bitcoin holdings in response to recent developments in the cryptocurrency market.
Santiment said that in the process, the whales bought about 50,000 BTC. The fall of Bitcoin to $ 30,000 made such wallets especially active. On the other hand, it has been stated that long-term investors and miners, as well as whales, are not interested in selling BTC.