On December 16, 2017, according to Investing,Bitcoin was worth $19,345.5. That day (with slight swings) began a sinking that did not hit ground until February 7, 2019, when it closed at $3,397.7. There are those who see in the data of the last days the start of a debacle that parangoned with that of four years ago. At the moment, Bitcoin and Ethereum stop their downfall, but the future is uncertain.
After tremendous growth, which led Bitcoin to rub against $60,000 last February 21, the collapse came. At the time of writing this article its price is $50,500.1, after reaching a minimum value of 48,911.1. The precipice flight below has been contained, but the coming days will be key to determining the future of this digital currency.
Bitcoin transactions have multiplied in recent days, both by those who sweep an unprecedented collapse (which are obviously deciding to sell) and by those who believe that this has only been a step back to gain momentum, and that, therefore, they estimate that it is the best time to invest in Bitcoin.
Does Elon Musk handle the price of Bitcoin?
Bitcoin volatility has been talked about countless times, as it is the main argument of those who criticize the crypto market. Those in favor prefer to ignore this characteristic which is obviously true. This oscillating ease means that the value of cryptocurrencies can rise or fall significantly by the actions, or words, of third parties.
To show a button: Tesla bought 1.5 billion euros in Bitcoin on February 8, 2021. That day it closed at $46,395.7. The previous one, on February 7, did so at 38,852.9. That is, a growth of 19.4% in a day by, among other factors, the strategic movement of the company led by Elon Musk.
Let's get on this line. On February 20, after a small Twitter discussion of Musk and economist Peter Schiff,the first claimed that “Bitcoin and Ethereum seemed pretty high.” A day later, Bitcoin rose slightly, but then began a decrease that failed to stop until five days later.
And what happened to Ethereum? Something very similar. On February 20, after a very slight decline, it closed at $1,913.88; went up the next day to finish with a value of 1,933.45. From there, as in the case of Bitcoin, came the downhill, whose soil, for the time being, appears to be at 1,578.11 on February 23. Currently, the value of Ethereum is $1,632.65.
An email saying you have gold is not the same as having gold. You might as well have crypto.
Money is just data that allows us to avoid the inconvenience of barter.
That data, like all data, is subject to latency & error. The system will evolve to that which minimizes both.
— Elon Musk (@elonmusk) February 20, 2021
Bill Gates: “If you have less money than Elon, you should be careful”
Speaking of influential millionaires, Bloomberg has given us the final combo: Bill Gates and Elon Musk. In an interview in this American medium, Microsoft's co-founder gave a touch of attention to small cryptocurrency investors: “If you have less money than Elon, you should be careful,” he said, to later insinuate that Musk has access to tools that the average trader does not have.
— Bloomberg Technology (@technology) February 23, 2021
In addition to the words and deeds of each other, there is no doubt that growing institutional support is another reason why, until the fall came, Bitcoin and Ethereum were record-breaking in 2021.
Optimistic and pessimistic about the future of cryptocurrencies
Experts in the cryptocurrency sector are debated between optimism and pessimism. As noted in Bolsamania,Cathie Wood, of Ark Investment Management, is one of those who sees the future of hope white, even has come to state that correction these days “is very healthy”. As Square, the company of Twitter founder Jack Dorsey (another declared probitcoin), Wood has bought more Bitcoin these days.
On the opposite side of the contest is Jack Janasiewicz of Natixis Investment Managers, who claims that cryptocurrencies dance to the beat of investor faith,highlighting difficulties in preventing their next moves. Unlike those who choose to invest in stocks or bonds, he explains, “there are no reasonable models to help determine their value.”
Have those who have decided to buy cryptocurrencies these days been right, or, on the contrary, who has hit the nail on the head are the ones who have rushed to sell? The value of Bitcoin and Ehtereum in the coming weeks will mark a trend that will help to give an answer to the question that everyone asks themselves.