Bitcoin continues to suffer because of Elon Musk's dislike for it

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Bitcoin once again tried to go above the level of $40,000 per coin yesterday, but to no avail. Thus, the cryptocurrency is still unable to recover its losses after falling by 56% from the highs of the year. This suggests that investors and institutions are not eager to "save" bitcoin. Despite the fact that many crypto experts continue to predict that bitcoin will reach at least $100,000 in value (the Internet is simply replete with such predictions), none of them clearly explains why bitcoin should grow to this notorious figure and when it will happen. As we have already said, it is easy to say that Bitcoin will cost $100,000, someday it will probably really cost that much. But so far, it is worth $40,000 and the chances of resuming the fall are much greater than the growth. As we've discussed in previous articles, the fundamental background for Bitcoin remains extremely poor. And it is now extremely difficult for "digital gold" to attract new investors and investments into its network. And if so, then bitcoin is not growing in price and may lose even more in the near future, because the vast majority of miners and investors deal with bitcoin only because of its attractiveness as an investment tool. If this attractiveness decreases, the flow of money into the bitcoin network also decreases. We have said earlier that the upward trend for bitcoin has dried up for several months in a row, and now there has been a collapse. And, perhaps, there has never been such a thing in the history of bitcoin that, after a strong and long upward trend, a collapse of 56% followed, and then the price immediately recovered. Usually, in such cases, a longer downward trend began, which usually took 2-3 years. In the same period of time, the cryptocurrency simultaneously consolidated and came to a certain fair value for that period of time. We believe that everything will be the same this time.

One of the most important reasons why Bitcoin will not show strong growth in the coming months is that Elon Musk has radically changed his rhetoric towards Bitcoin. No one knows exactly what Elon was thinking about bitcoin when Tesla invested 1.5 billion in coins, then announced its readiness to sell electric cars for bitcoins. Surely, Musk had some ingenious plan, but most likely it did not work. Because after a month and a half, Tesla removed the ability to pay for its cars in bitcoins, and a little later announced the sale of 10% of the coins "to check liquidity." However, the markets saw something else: first, Tesla and Elon Musk popularized bitcoin and introduced it into their activities, and a month later they began to abandon it and sell it. Naturally, the markets believe that Musk no longer believes in Bitcoin, and since the person who sends spaceships to Mars does not believe in it, then Bitcoin should not be bought. But Musk's recent comments only exacerbate the market's belief that he has renounced BTC. For Elon, bitcoin has become sharply ineffective and highly polluting the environment.

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Technically, bitcoin twice dropped as close as possible to the level of $30,500 and at the moment has moved away from this level not too far. At this time, trading is about $37,000 per coin. Thus, we still count on the rise of bitcoin quotes to the critical line and for a certain period of consolidation. Nevertheless, if the bitcoin quotes manage to gain a foothold below the $30,500 level, then the token's depreciation may continue.

The material has been provided by InstaForex Company - www.instaforex.com

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