After the biggest crash in Bitcoin’s space for more than a year the market is recovering. The coin is trading above $40K and at the time of writing the price is $41,870 per coin.
Many believe that the crash of the market was due to the wrong news that China bans all cryptocurrencies. On Tuesday the country’s central bank and a handful of payment firms repeat to the investors that crypto assets are highly speculative. Something was said in 2017.
Before that during the weekend Musk tweeted his arguments against Bitcoin. In addition, Luis de Guindos, vice president of the European Central Bank, said that cryptocurrencies are not “a real investment.” During an interview with Bloomberg, he stated that “This is an asset with very weak fundamentals and that is going to be subject to a lot of volatility.”
Even though the true believers saw an opportunity to buy on the dip. But let’s talk about the crypto influencers.
According to Nic Carter, founding partner at Castle Island Ventures and co-founder at Coin Metrics, the crash is not because of Musk’s comments. There is a combination of news for the shock.
Danny Scott, CEO of UK-based cryptocurrency exchange CoinCorner, agreed that newbies could be scared of witnessing their first dramatic dip. However, he tweeted that “Fundamentals have not changed. Infrastructure building has not changed. Bitcoin becomes stronger from these events. Focus on the long term, not the short.”
Some institutions found it appropriate to accumulate more Bitcoin. MicroStrategy bought BTC for $10B after the business bought BTC for $15B just last week. Ark Invest also bought shares of two companies, heavily involved in the crypto space – Coinbase and Tesla.