Bitcoin Gains Momentum: Is It Taking Off?

Bitcoin gains momentum

The founder of Tesla had hit the main cryptocurrency with a sledgehammer. Then came other goals from China and the USA. But now prices are recovering.

The Bitcoin and the rest of the cryptocurrencies seem to find a new black week after they went through, and now with the support of billionaire Elon Musk with a new twit put a brake on the slide.

This Wednesday, Bitcoin is approaching $40,000, which marks a slow but steady increase in recent days for the main cryptocurrency.

For its part, Etherium, the second most important, exceeds $2,800. Cardano shows a rise of 10% in the last 24 hours and is trading at $1.74. The Dogecoin is trading at $ 0.34.

Meanwhile, Litecoin is trading at $ 201,298, which represents a daily rise of 11.73%. In other important cryptocurrencies , Tether is the one that shows the greatest stability in recent days with a 1 to 1 parity with the dollar.

Anyway, the very volatile market for cryptocurrencies continues in times of uncertainty and many of the digital assets show weekly losses of more than 40%. Of course it is not alarming. This is normal behavior and it should be remembered that this year there were increases of up to 20,000%.

Last week was a debacle after China and the United States Treasury announced measures to tighten regulations and tax compliance for cryptocurrencies.

Reports indicate that this Sunday massive sales of bitcoins were registered. However, it is also pointed out that the large holders of the main cryptocurrency, the so-called “whales” and the “miners”, maintained their positions, auguring a new upward cycle.

And then Elon Musk showed up to drive up prices. The automotive tycoon who owns the Tesla carmaker said he spoke with North American Bitcoin “miners” who “pledged to publish the current and planned renewable use” of energy and will also ask other miners around the world to do the same. same. Musk called this initiative “potentially promising.”

Thus, Elon Musk came to the rescue of cryptocurrencies after days ago Tesla’s decision not to accept more Bitcoin as a payment method due to its high environmental impact caused a debacle in the price.

Why Bitcoin and other cryptocurrencies fell

Last week’s losses responded to the warning from China, which said it seeks to prevent financial risks and targeted bitcoin.

In a statement, the Asian country expressed its intention to use tools to regulate the cryptoactive, which in the week was repeatedly below US $ 31,000.

The message from China came after the United States announced its progress in regulation and will request that operations that exceed US $ 10,000 be reported to the treasury.

The measure will also be implemented for the rest of the cryptocurrencies in order to strengthen tax compliance in the country.

Cryptocurrencies trade with marked volatility and this led to bitcoin losing 25% on Wednesday, although it was finally able to moderate the fall to 7%.

The price reflects the comings and goings of investors, both institutional and those looking for an opportunity to “make a difference”, to the rhythm of the statements of the magnate Elon Musk , who made both the price of the cryptocurrency go up and down.

The cryptocurrency surpassed US $65,000 on February 8, when Musk announced a massive purchase with corporate funds, but in recent days it has suffered a sharp decline due to the change of opinion of the main Tesla shareholder, when it was warned that it was not would accept tokens for the sale of electric cars.

In addition to Musk’s statements, the People’s Bank of China argued that digital tokens cannot be used as a form of payment, which also contributed to the drop.

Consequently, from February to the present, the bitcoin market, which reached more than a trillion dollars, experiences a loss that at the moment reaches US $500,000 million.