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Summary
- Bitcoin has slid by almost 22 per cent last week, its worst weekly fall in over a year.
- Bitcoin has faced selling pressure just when the global equity markets are falling due to rising bond yields.
- Bill Gate’s take on Bitcoin to “stay aside if you don’t have spare money” hit the sentiments of the crypto bulls.
Bitcoin has seen an unprecedented demand which skyrocketed its price from US$11,000 in October 2020 to above US$58,300 in February 2021. During the rally there has been a few instances when Bitcoin had fallen by more than 10 per cent in a day. However, the sheer buying and FOMO among the crypto community had materialized in every correction being bought.
In the last six months, it’s the first time that Bitcoin’s party seems to be getting over. The bull run that lead to a 5x gain seems to be finally hitting a roadblock. On the weekly chart, Bitcoin is heading for the worst weekly fall in almost a year.
The crypto bellwether has fallen sharply by as much as 22 per cent from the last week’s high of US$58,367 (as of 28 February 2021, 6:38 PM EST). The hurdle in Bitcoin’s rally has come just when the global equity markets are also facing severe selling pressure on the back of surging bond yields.
The bond yields in the US have risen by almost 100 basis points from the low of June 2020. The rising bond yields has raised concerns over rising inflation and has forced investors to re-access their positions across various asset classes.
Last week, Bill Gates had revealed his interesting take on Bitcoin, being the third richest man on the planet his views are definitely taken as words of wisdom. In an interview with Bloomberg TV he said, Bitcoin is not for everyone and only the richest person in the world should consider investing in it. He even gone on to say” If you have less money than Elon, you should probably watch out”.
Read More: Bitcoin Joins the Trillion Dollar Club, Surpasses Facebook’s Market Cap
Very recently, Elon Musk himself had called out Bitcoin and Ethereum to be in an expensive zone (when it was trading near the all-time high levels). That negative remark coming from the man who had a key role to play in Bitcoin’s rally with his high-impact tweets, started to raise questions regarding the sustainability of this rally.
