Bitcoin rally hits a roadblock; price falls after Musk's tweet

February 23, 2021 06:36 PM AEDT | By Team Kalkine Media
 Bitcoin rally hits a roadblock; price falls after Musk's tweet

Source: Shutterstock

Summary

  • Bitcoin rally hit a significant roadblock, plunging to nearly 10% on Tuesday (23 February 2021)
  • The price decline comes after Elon Musk's tweet on Saturday.
  • US Treasury Secretary Janet Yellen cautioned that bitcoin is an unpredictable asset, fearing investors might take a hit.

The most popular cryptocurrency in the world, bitcoin, sank nearly 10% on Monday,  dipping below the 50K-mark at one point and traded at USD 48,383.0. Bitcoin trading is highly volatile in nature, and price fluctuations are typical for widely-used cryptocurrency. That said, it is not clear what contributed to this considerable fall. 

Image source: © Colicaranica  | Megapixl.com

What did Elon Musk tweet?

On Saturday, Tesla's CEO Elon Musk had tweeted that the Bitcoin and Ethereum prices seem high. The next day, bitcoin continued its stunning rally and traded as high as USD 58,238.0. However, the rally paused later, and on Monday, it declined by 5.75%. On 23 February 2021, at 1:43 PM AEDT, bitcoin traded at USD 51,608.0, down 9.24%.

On Monday, Janet Yellen, the US Treasury Secretary, also expressed her concern about the bitcoin trading's huge uncertainties, which can wipe traders’ wealth. She labelled it as highly speculative. She called bitcoin transaction an extremely inefficient way of transactions, and the considerable energy spent in the process is astonishing, she added.

Yellen's comment comes at a time when bitcoins seem to be gaining ground and the mainstream becoming more accepting towards these cryptos. Amid the pandemic crisis, bitcoin trading has flourished and touched new highs. 

Elon Musk loses the world's wealthiest person position after Tesla shares fall

Tesla Inc's (NASDAQ:TSLA) founder, Elon Musk, has been a supporter of cryptocurrencies, and he often tweets about them. His encouraging tweets significantly contributed to the bitcoin rally. Tesla also invested USD 1.5 billion in bitcoin. Its investment into bitcoin has not only contributed to bitcoin's rally but reportedly also made the E.V.s market leader gain more profit.

MUST READ: Elon Musk's Romance With Cryptocurrency

After Musk's Saturday tweet, Tesla shares also dipped and wiped USD 15.2 billion from his net worth. 

The current fall in the digital coin's value has come just days after bitcoin's market cap raised to USD 1 trillion.

To know more, click here.

The expert opinions are divided on bitcoin trading. On one side, its rally is unavoidable for mainstream, and even governments keep a close tab on the latest developments. On the other side, the extremely volatile nature of these bitcoin trading concerns the government and authorities.  


Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.


AU_advertise

Advertise your brand on Kalkine Media

Sponsored Articles


Investing Ideas

Previous Next
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.