24.02.202107:26 Forex Analysis & Reviews: Who crashed bitcoin by $ 15 000? Janette Yellen or Elon Musk?

Exchange Rates 24.02.2021 analysis

Despite the fact that the correction for bitcoin has been brewing for a long time, the question remains open as who was behind the last drop in the cryptocurrency by $ 15,000? Technical reasons have not gone away, but still we all remember that the cryptocurrency can pass $ 5-10 thousand per day on just one tweet of Elon Musk or just on the news of a major Bitcoin purchase. So maybe this time, it was all the fault of someone's tweets and comments? However, the search for these tweets and comments did not take long. Just yesterday, US Treasury Secretary Janet Yellen criticized bitcoin, which warned investors about the potential danger that the cryptocurrency carries. According to the Minister of Finance, bitcoin cannot be used as a medium of exchange everywhere. Yes, it wins over other payment methods in some types of transactions, but it also has a sufficient number of disadvantages. Yellen drew again the attention of the fact that in most cases, payments in bitcoins are made for illegal activities. She also believes that bitcoin is an extremely inefficient method of transactions, and the amount of electricity that is spent on its extraction and payment processing is amazing. In addition, do not forget that we are also talking about the environment. CO2 emissions into the atmosphere are gigantic, as miners consume a huge amount of electricity, which is produced in power plants by burning coal or other energy carriers. In addition, Yellen believes that bitcoin is an extremely speculative asset. She cautioned investors, saying that many can get losses by buying digital gold, as the asset is very volatile.

Also, the words of Elon Musk that bitcoin and ether are too expensive could cause the fall of the cue ball by $ 15,000. The head of SpaceX and Tesla just recently once again commented on the main cryptocurrencies and said that he considers their cost unjustifiably inflated. Thus, a certain part of investors could pay attention to these words and sell their bitcoins, fearing that the price of the token will not go up. However, Musk's words can hardly be interpreted with all seriousness, since just a couple of weeks ago, his Tesla bought bitcoins for $ 1.5 billion, not caring that the price for it is "non-market" and "inflated". As we have already said, in the coming days, we need to monitor any comments made by Musk and other high-ranking officials and large businessmen as they may have an impact on the course of the cue ball.

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.

Paolo Greco,
Analytical expert
InstaForex Group © 2007-2021
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