After a week of serious price drops, Bitcoin is back to the usual stuff. The leading cryptocurrency by market volume is retracing its steps back to $60K and beyond with a 10% price climb on Monday. It continued for the biggest part of Tuesday, consolidating around the $54,000 mark where it stands today.
It has been a week of growth after a week of disappointment that scared off many potential investors. Experts were right about one thing. The huge price drop was most likely a catalyst for an even harder push toward the $70,000 mark. Predictions are wild for this week and beyond it, and we may see BTC rising to the moon like never before.
A Huge Rally
While some were disappointed about the huge price drop, other investors piled back in the market taking advantage of the low price. As soon as the slump was over, Bitcoin shot back with a 13% increase, the largest intraday gain since February. The price rise comes after JPMorgan Chase & Co. announced the introduction of a Bitcoin-managed fund to some clients that should arrive this summer.
The price rise followed a serious two-week drop that came among growing fears of a crypto bubble. Technical warnings from Wall Street didn’t help as well, pushing investors to sell instead of holding their position. It resulted in a major price drop which pushed Bitcoin below the 100-day moving average and lowest price points since early March.
Many believe that it was all Elon Musk’s doing. On Saturday, the Tesla CEO and renowned supporter of Bitcoin, tweeted “What does the future hodl?” which was not a typo at all. The HODL term is short for “hold on for dear life” in Internet slang which crypto supporters use to refer to buying and holding their digital coins.
Musk’s tweet cased an uproar in the crypto community and so began Bitcoin’s climb. This isn’t the first time his comments have affected the market. He even made Dogecoin rise to the moon, a lowly cryptocurrency that hasn’t been living up to expectations.
With backing from institutional investors and companies such as Tesla, Bitcoin has risen over 80% in 2021. It has fueled the rise of other cryptocurrencies too, mainly Ethereum which is at its highest point and many up-and-coming coins such as Cardano and Axie Infinity.
Public support for the leading cryptocurrency has been quite common in the past few months. Tesla announced that it’s adding Bitcoin as payment for its electric cars back in February. Musk also noted that the company has bought a substantial sum of Bitcoins that has resulted in many others investing in the virtual coin.
It seems that the sentiment surrounding Bitcoin is changing. The ever-changing and sensitive crypto landscape is moved by Musk’s tweets and the support from other businessmen and companies. The market has never seen such support as in the past 12 months, so the future for Bitcoin and the crypto market is certainly bright.