The price of Bitcoin plummeted on Tuesday 23 February, dragging down other cryptomonners after a pessimistic message from Tesla boss Elon Musk and a further warning from US Treasury Secretary Janet Yellen.
At around 11:20 GMT (12:20 in Paris), Bitcoin lost 14 percent to $47,255, and ethereum, the second largest cryptomony, fell in its wake by 18 percent to $1,475. Since December 2020, Bitcoin has been pushing back its all-time high, rising in less than three months from $20,000 to $58,350 on Sunday, galvanized by the growing interest of institutional investors. For memory, the giant of the electric vehicles Tesla had revived the flames of the market at the beginning of February by announcing to have bought 1,5 billion dollars in bitcoins, while its leader, Elon Musk, praised the merits of the cryptomonnaies on the social networks.
Since the announcement, the price of bitcoin has risen by a further $20,000, and ethereum had also reached an all-time high of $1,975 on Sunday 21 February. Defending the merits of cryptomoney on Twitter, Elon Musk said on Saturday: « That said, Bitcoin and ethereum look high, lol. After resisting for a few hours, the cryptomoney industry has started to decline.
Bitcoin as a « highly speculative asset »…
It’s not a very good sign for a so-called « safe haven asset » to follow a man’s instructions to the letter, » Swissquote market analyst Ipek Ozkardeskaya said in a note. On Monday, it was the turn of Janet Yellen, former president of the American Central Bank (Fed) to develop her opinion on Bitcoin in an interview with the New York Times. « It is a highly speculative asset, » she said, adding: « I am concerned about the potential losses that investors could suffer.
In addition to investment funds and a few companies like Tesla, many individuals are buying fractions of bitcoin, taking advantage of the many platforms that have flourished in recent years. Market observers, who welcomed the professionalization of the market in late 2020, noted that public interest was reaching levels most seen since 2017, when prices had soared before collapsing.
« Media Machine »
« The media machine is running at full throttle, » commented one anonymous cryptoseller. Given Bitcoin’s dizzying performance, the significant declines of the last two sessions only erased the escalation of the previous nine days.