Bitcoin Price Falls 54% From Its High

Monday, May 9, 2022
author picture Gerald Girard
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Original content created by news.limited staff

Bitcoin Price Falls 54% From Its All-Time High

Despite recent news that the Securities and Exchange Commission will postpone its decision on a bitcoin ETF‚ the cryptocurrency has yet to reach new highs. However‚ the intercontinental exchange (ICE) has launched a new company‚ Bakkt‚ which will enable you to use bitcoin at coffee shops and Starbucks. Additionally‚ the new company is leveraging Microsoft's cloud to build an open digital asset ecosystem.

Elon Musk's tweet

Elon Musk's tweet about Bitcoin's recent slide has caused an unexpected reaction in the cryptocurrency market. The billionaire CEO of Tesla Motors‚ with more than 54 million followers on Twitter‚ has a complicated relationship with cryptocurrency. He's often been quick to condemn them‚ saying that they hurt the environment‚ and then teasing the market by tweeting about them when they're suffering. According to Kuber‚ a bitcoin analyst at CoinSwitch‚ a cryptocurrency exchange‚ Elon Musk's tweets have caused a surge in trade volume. Elon Musk's tweet about Bitcoin price dropping 54% from its high has caused the cryptocurrency market to react negatively. The tweet has been linked to Tesla's decision to suspend its plans to accept bitcoin. Musk's tweet also contained a comic strip depicting a break-up and the use of energy by a cryptocurrency. The tweet triggered a reaction in the cryptocurrency market‚ and Bitcoin has since recovered slightly. Although the price of Bitcoin fell‚ the market is still up 300% from the previous month's low. The most recent record high was reached on 25th April‚ and despite the subsequent dip‚ the price of bitcoin quickly recovered. On May 12th‚ Elon Musk changed his tune. He suggested that Bitcoin was overbought and that his tweet was responsible for the correction. Many technical analysts believe that the tweet is not the only factor driving the market‚ as historical prices of cryptocurrencies have fallen before the announcements of Tesla and Elon Musk. Besides the impact on the cryptocurrency market‚ the tweet's impact has been felt beyond the crypto market. While Bitcoin prices have plummeted in price‚ shares of Samsung Publishing‚ a company owned by Musk‚ soared. While the tweet may have caused some confusion‚ it may have muddied the legal waters in Musk's favor. Reuters' findings have shown that it's important to follow the latest news about Bitcoin. As the Bitcoin price fell‚ the tweets about Tesla's decision to stop accepting Bitcoin payments were met with criticism from the right. Tesla CEO Elon Musk has also been vocal about his distaste for cryptocurrencies‚ but has also stated that he would still use bitcoin when Tesla finds a better source of energy. This tweet has prompted several debates on the value of cryptocurrencies.

Fed's open-ended easing program

The central bank's upcoming interest rate hike could send Bitcoin's price plummeting‚ with many predicting that it will be as much as 45% lower than its all-time high. This would echo the stance of the European Central Bank‚ which has maintained flexibility in response to a turbulent environment. According to futures contracts for Fed funds‚ the central bank is expected to raise interest rates by 25 basis points next week‚ the first rate hike since December 2018. Unlike the European Central Bank‚ the Fed lowered rates to near zero two years ago‚ launching its open-ended asset-purchasing program to counter the adverse economic effects of the coronavirus pandemic. The stock market has also undergone a painful selloff this week. The Dow Jones industrial average fell 3.9 percent this week‚ the S & P 500 shed 5.1 percent and the tech-heavy Nasdaq composite index declined 6.2 percent this week. But the drop in bitcoin and other cryptocurrencies is far more rapid than the stock market's. This has spooked some investors. Traders are worried about the long-term viability of the cryptocurrency market. Despite the recent drop‚ it's likely to rebound in three weeks. Historically‚ digital currencies have recovered when the Fed raises interest rates‚ and this time may be no different. The Fed may not raise rates as aggressively as some have predicted‚ but the price of bitcoin has been in a tight range for months. If the Fed doesn't make a change‚ bitcoin's price will likely fall another 54% from its high. The rise in interest rates will affect stocks‚ commodities‚ and other risky assets. It may even affect cryptocurrency and the markets until 2023. The Fed has already raised interest rates once this year‚ and a second hike is likely next. The Fed may have to hike rates several times next year to combat stubbornly high inflation. However‚ the volatility could last only a few months‚ depending on the underlying economy.

Bitfinex's security breach

Reuters reports that Bitfinex‚ a Hong Kong-based digital currency exchange‚ has suffered a security breach that may have led to the theft of up to $65 million in bitcoin. The company says that nearly 120‚000 bitcoin have been stolen and has suspended all transactions while the security breach is investigated. The company says it is deeply concerned about the issue and is investigating all options. The recent hack may be the first step toward more robust regulation. The CFTC is now examining whether the definition of delivery is still appropriate. The CEA should be updated to address the special characteristics of cryptocurrency exchanges. The Bitfinex hack may also lead to increased interest from regulators. However‚ the CFTC and other federal agencies have a long history of disfavoring regulators and have generally favored industry self-regulation.

Hearn's attack on Bitcoin

In response to Hearn's recent post‚ many Bitcoin developers have criticized his comments. They questioned the technical understanding of Hearn's criticisms‚ and suggested that consensus would be easier without Hearn's input. While there's some truth to these criticisms‚ some bitcoiners are not convinced. Here are some reactions to Hearn's post. Read on to find out what they're saying. While some bitcoiners accepted his departure gracefully‚ others were not so quick to forgive him. Many were quick to blame Hearn for his departure‚ while others said that his resignation was the result of frustration with bitcoin and block size. While some claimed that Hearn was merely frustrated with bitcoin's price‚ others said that he was purposefully sabotaging it. Regardless of the motives behind his departure‚ his actions reflected his discontent with the Bitcoin community. Hearn's exit was widely covered in the mainstream press. While many people were shocked to see a former Blockstream CEO exiting the Bitcoin project‚ Hearn did not make his decision lightly. Hearn also cast the co-founder of Blockstream as the villain of the story. Maxwell and Hearn have been debating over the importance of scaling bitcoin and the decentralization of the cryptocurrency.