TL; DR Breakdown
- Elon Musk remarked about “Bitcoin adoption by conventional finance.”
- Despite his comment, the price of Bitcoin experienced a dip.
- The drop occurred due to the market’s reaction and public sentiment.
When rich people plan to make a move about a thing, the whole world feels the impact. Last week, when Tesla boss, Elon Musk, changed his Twitter bio to “#bitcoin”, the price of BTC spiked roughly by 14% in minutes. Since then, investors have been awaiting a comment from the richest man.
On Monday, he commented that “Bitcoin is on the verge” of being broadly accepted by more conventional systems. Musk revealed this information about the adoption of the leading crypto asset in an exclusive chat on Clubhouse.
Certain industry speculators have shown excitement since Musk stated his support for Bitcoin. Investors are optimistic that Musk’s comment is good for the crypto world and would help improve its global acceptance. Dan Tapeiero, a partner at 10T Holdings also reacted to the news about Musk; he said: “somehow, it feels good.”
Even though Elon Musk’s public comment on Monday has raised speculator’s hopes. However, after his statement, Bitcoin’s price dropped immediately by about 3%.
What could be responsible for Bitcoin price drop?
Crypto analysts think there are two things responsible for the drop in price despite Elon’s statement. One reason is that people expected that Elon would reveal his crypto holdings.
While the other reason for the momentary dip experienced by BTC is that the market might have reacted with sell-the-news response.
According to Cointelegraph, BTC showed weakness after Elon’s tweet on Friday made the price rise to $38,000. Presently, traders have their eyes on the resistance level at $34,500 and $35,000, which when broken would indicate the end of the short-term move.