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After Tesla CEO Elon Musk tweeted, the price of Bitcoin and many other cryptocurrencies rose sharply this morning.
Hold on to your cryptocurrency investor, after you know who’s a tweet, the market goes crazy again.
Tesla CEO Elon Musk just couldn’t control himself. This morning, after entering social media, he single-handedly sent the value of Bitcoin and many other cryptocurrencies soaring.
Earlier this month, he said on the grounds of environmental issues that his electric car company would abandon its promise to accept Bitcoin as a payment method, thus pouring cold water on the entire market.
This is because Bitcoin is created through “mining” (the process by which new Bitcoin enters circulation), which uses a lot of computing power and energy.
Musk has previously cited concerns that a large part of this energy comes from traditional fossil fuel resources, and when you try an electric car, this appearance is not good.
However, this morning, Mr. Musk only mentioned that he had a conversation with some “North American Bitcoin miners” about where they got their energy from, which put the crypto world in a dilemma.
He said: “Talk to North American Bitcoin miners.” “They are committed to publishing current and planned renewable energy usage and ask miners WW (Global) to do so. Potential hope.”
According to Coindesk data, in the past 24 hours, the price of Bitcoin has risen by 17.12%, while the price of Ethereum has risen by 29.51%.
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This is a catastrophic decline in the price of Bitcoin since it hit a record high of US$81,961.56 on April 15 this year.
Rebalancing the “healthy” state of the cryptocurrency market
Some in the crypto community believe that last week’s collapse is a rebalancing, and in the long run, the market needs to go higher.
Anatoly Crachilov, Chief Executive Officer of Investment Manager Nickel Digital, said: “The sharp valuation declines that have occurred this week are healthy because they have allowed the market to clear excessive speculative positions and continue to Consolidate before the first phase of expansion.” Forbes.
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He pointed out that Bitcoin “increased by 122% from the beginning of this year to April this year”.
He added: “We have seen this pattern time and time again in multiple cycles, and hope that this situation will continue to exist until the market matures and gains greater participation of institutional capital.”
Mr. Krachilov is one of many investors who believe that Bitcoin and other currencies will rebound.
Pete Humiston, manager of Kraken Intelligence, part of the US bitcoin and cryptocurrency exchange Kraken, said on Twitter that although the value of bitcoin has fallen, the funding rate has rebounded in the past few days.
He said this signifies that the market is “resetting”-paving the way for recovery.
However, other analysts have warned that cryptocurrencies may collapse at any time, leaving everyday investors in disputes.
Vitalik Buterin, the crypto billionaire and founder of the digital coin Ethereum, Said late last week that he thinks cryptocurrencies are in a bubble And it is “suddenly difficult to predict” when it will pop up.
Butlin said: “The matter may be over.” “It may end several months from now.
“So far, we have at least three such big crypto bubbles. Usually, the reason that the bubbles finally stop is that something happened, which clearly shows that the technology does not yet exist.”
At the same time, ABC business editor Ian Verrender said that investors should “be prepared to lose everything.”
He wrote: “Bitcoin is a bubble.” Analysis film. “Although its value has grown exponentially in recent years, its incredible volatility makes it a safe haven. Since it is not good for trading and does not possess proprietary technology or intellectual property, the only good thing is speculation.
“Who knows, it may be more than $100,000 [$A129,999] In the near future. But if everyone suddenly decides to abide by the rules of economics and start acting rationally, then be prepared to lose everything. “
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