13.05.202118:17 Forex Analysis & Reviews: Bitcoin and the "Musk factor": where to catch the main cryptocurrency?

Today's sponsor in the cryptocurrency market is Elon Musk. Only a lazy person would not write about how his statement collapsed bitcoin today. But the event is significant, and it is not a sin to repeat itself.

On Wednesday, Tesla CEO Elon Musk said that the company is temporarily not ready to accept payment in bitcoins, since its mining is very energy-intensive and leads to a huge amount of non-environmental emissions. In response to this news, bitcoin started up at almost $45,000, which eventually rose to $50,000 per coin and is still holding above this mark.

The question that interests everyone: what will happen next? Will the market crash, will institutional investors flee digital assets after realizing the dire reality of environmental pollution?

It should be admitted that Elon Musk and his rhetoric over the past year have contributed a lot to the growth of bitcoin. Dogecoin took off too, but let's not talk about it, it's very controversial. Most likely, the demand from retail investors grew on the "Musk factor". And the institutionalists, who now mostly hold the market, were unlikely to be very worried about yesterday's statement and today's pursuit criticism.

The fact that bitcoin was bought back to $50,000 after the fall, is perhaps one of the confirmation of this assumption.

As for the non-ecological mining of bitcoin, emissions and pollution, at a time when everyone is fighting for decarbonization, not everyone agrees with Musk.

For example, yesterday and today, many experts expressed their opinion on this matter. Their statements, in my opinion, are sound and deserve attention.

Stephen Kelso, Head of Markets and Cryptocurrency Expert at ITI Capital, noted:

"Elon Musk once again had a significant impact on bitcoin, but this time by provoking its fall. This will inevitably lead to some short-term composure on the part of retail investors, who were inclined to accept Bitcoin in the first place at the direction of Elon Musk, who originally valued the cryptocurrency. However, institutional investors better understand the relevance of time frames by looking at correlations and covariance in portfolios with multiple assets. "

London-based fintech investor and VP Capital founder Viktor Prokopenya said: "Cryptocurrencies now have emissions, but in the future, they may become zero. A hundred years ago, people made the first car. These cars had a very high carbon footprint. But we have not stopped making cars - we have improved the technology. Society has created a zero-emission vehicle. "

Simon Peters from eToro offered a more forward-looking view. "Bitcoin, Ethereum, and other crypto assets are now entering a correction zone, in most cases falling more than 20% from their peak. After refreshing all-time highs, there will naturally be some gains in place, while we are also seeing a general sell-off among risky assets such as technology stocks. However, for many crypto assets such as Bitcoin and Ethereum, the long-term history has not changed. This new class is revolutionizing many aspects of financial services. And while nothing rises in a straight line, the long-term underpinnings of crypto assets remain as solid as they've been. "

Well, Elon Musk's statements most likely triggered the correction. If bitcoin holds above $48,000-$50,000 per coin, then it may well regain all the lost positions. If not, it may fall to the support level at 41,980.24.

Exchange Rates 13.05.2021 analysis

*Analisis pasar yang diposting disini dimaksudkan untuk meningkatkan pengetahuan Anda namun tidak untuk memberi instruksi trading.

Ekaterina Kiseleva,
Pakar analisis InstaForex
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