Musk Tackles Bitcoin as it Surpasses $40,000 Mark

Although Musk has been reluctant to admit that he is “manipulating” the market, the market has once again demonstrated Musk’s influence

Bitcoin broke through the $40,000 barrier at 9:13 p.m. ET today and stood firm, with a slight pullback later, but the price is still stable above $40,000, according to Bittorrent data. A huge influx of money into bitcoin has seen its market share soar to 45%.

For this jump in bitcoin, the market is widely believed to be due to the commitment of Tesla CEO Elon Musk, who tweeted that Tesla only sold 10 % of its bitcoin to confirm bitcoin liquidity, and that Tesla will accept bitcoin again as soon as 50% of its bitcoin mining operations shift to renewable energy.

Musk Tackles Bitcoin as it Surpasses ,000 Mark

Although Musk has been reluctant to admit that he is “manipulating” the market, the market once again showed Musk’s influence as the price of bitcoin jumped from $37,000 to $39,000 in about an hour after his tweet. These numbers put to shame anyone who ever tweeted “you’ve lost your market clout” at Musk. It may be that the crypto market is no longer sensitive to his negative tweets, but when positive tweets are sent, the market still responds immediately and positively. Last week, MicroStrategy CEO Michael Saylor hooked up Musk for a closed-door meeting with other North American bitcoin mining players to form the Bitcoin Mining Council, an association that aims to move the industry toward renewable and sustainable energy mining solutions.

As of this writing, Bitcoin has gained 13% intraday and has a market share of over 45%. This is the highest level since May 2021.

Due to the waterfall plunge across the crypto market over the past few weeks, the gradual strengthening of crypto air power, the influx of major South American developing countries into bitcoin, MicroStrategy’s highly leveraged buying of bitcoin, and undoubtedly increased market risk once again, as well as the possibility of a post-epidemic economic recovery and Fed tapering, has caused more investors to move from the sidelines to the short side. In the last 4 weeks, for the most part, the number of shorts has been greater than the number of longs.

Bitcoin’s air force, which has been active since recently, got a head start, with $320 million in short orders plunging across the network in the last 24 hours. At one point, the bitcoin contract’s long-short ratio fell to near 0.96 before Musk came out of the woodwork.

Data on the chain suggests that while bitcoin is rising, market liquidity is gradually declining, with trading volume on both centralized and decentralized exchanges hitting a multi-month low. To some extent, this means that core traders in the market have become less enthusiastic about trading. This rise in bitcoin is likely just a return to the light from the news fever, and the fundamentals may not continue to support a post-market rise.

Musk Tackles Bitcoin as it Surpasses ,000 Mark

Santiment, an on-chain behavioral analytics firm, tweeted that while market prices are rising, overall sentiment in the cryptocurrency market is gradually cooling, with social media sensitivity negatively correlating with cryptocurrency prices for cryptocurrencies including Ether, XRP, Cardano and Polkadot.

Musk Tackles Bitcoin as it Surpasses ,000 Mark

These numbers likely indicate that the cryptocurrency market has entered a bear market phase.

Justin Bennett, a cryptocurrency trader and analyst, believes that on June 25, Bitcoin’s Q2 futures will expire, and as the market rallies slightly due to the recent weakening of the selling pressure, then on the expiration date of the Q2 futures, we will probably see the bottom of the entire cryptocurrency market revealed.

Posted by:CoinYuppie,Reprinted with attribution to:
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