Reasons for Bitcoin's decline and its near-term price outlook
While many stock market players were expecting long-term growth, the price of the main cryptocurrency Bitcoin fell.
Sometimes it's simply shocking how easily the world's powerful can influence stock prices; just one phrase is enough for the price of an asset to rise or fall within a couple of hours.
This is what happened this time, after Elon Musk announced that his company would stop selling Tesla electric cars for cryptocurrency.
After this, the price of Bitcoin began to fall rapidly, and as a result, the rates of other cryptocurrencies also fell.
As a result, the minimum price of Bitcoin was only $45,890 per unit, the lowest the cryptocurrency has fallen since March 2021.
Our lives are full of coincidences. Just yesterday, I saw a video showing Elon Musk making more money in just a couple of months from Bitcoin's rising price than he did selling electric cars in all of 2020. Perhaps he should switch to stock market speculation.
Indeed, by purchasing 50,000 bitcoins for $1.5 billion at a price of $30,000 each and selling them for $2.85 billion before the announcement, Musk was able to earn approximately $1.35 billion. It's worth noting that only 7,500 bitcoins were officially sold.
What to expect from the further course
The most thankless task is trying to predict something knowing that someone can so easily play with stock prices:
However, it's still possible that the Bitcoin price rise from $46,000 to $51,000 after the drop was caused by further buying by major market players. It's also possible that uncovered short positions were closed at the low. In that case, Musk's profit could be increased by another couple hundred million.
The emerging upward trend is encouraging smaller investors to buy as well. A rise to 54,700-55,000 is likely, but the price direction will depend on fundamental news from major market players like Elon Musk.
