Bitcoin’s price problems are unrelated to politics since “Musk’s tweets are more important.”
BITCOIN has had a tumultuous 2021, with prices reaching new lows in June and July, but analysts say the crypto’s price issues are mainly due to volatility created by Twitter speculation generated by people like Elon Musk, rather than politics.
Bitcoin is currently trading at £27,680.11, down from a high of £46,212.41 in April. The sudden decline of the digital currency has been attributed to a number of issues, including China’s restriction on Bitcoin mining.
However, according to Victor Argonov, senior analyst at investment firm EXANTE, Bitcoin’s demise has a “very limited connection with political events.”
Mr Argonov stated that “news from China has ceased to particularly effect the market” after initially driving down the price of the digital currency.
“Investors have already accepted the fact that cryptocurrencies are not doing well in the Middle Kingdom,” he continued.
“The relevance of the EU attempt to outlaw anonymous BTC transactions should also not be underestimated: even if it is accepted, it will take years for the required regulations to be passed, according to attorneys.
“A lot can happen during this time. The US stock market drop on Monday and the Grayscale Bitcoin Trust unblocking 16,000 BTC on Sunday were both pure economic drivers in the BTC crash.”
Mr Argonov then told This website that political considerations were “simply excuses” for Bitcoin’s poor June performance.
“Since late June, BTC has been on a downward trend, and it was only a matter of time (and depth) before a new crash,” he continued.
“However, it’s possible that this is the series’ final collapse.
“It is noteworthy that Elon Musk, the ‘culprit’ of the May crash, stepped out in support of BTC on Wednesday, emphasizing the importance of speeding up the recovery.”
Mr Argonov was agreed upon by Patrick Reid, co-founder of the Adamis Principle, a company management consultant in London.
However, he advised potential investors to consider “what are the key drivers of Bitcoin,” according to this website.
“As it ‘matures’ from infancy to spoilt adolescent, Bitcoin should stabilize as volume grows and it becomes an acceptable form of payment,” he continued.
“Keep in mind that it is still a small market. Elon Musk, a tech genius, has a similar following to Bitcoin, but so do people who buy gold.
‘In truth, they’re pretty similar.. “Brinkwire Summary News,” says the author.