Elon Musk Changes his tune on Crypto Currency: The Digital Gold
Bitcoin decline that began last week after Tesla CEO Elon Musk changed his tune on the digital currency has engulfed other cryptocurrencies, as Dogecoin, Litecoin and Ethereum all fell sharply on Wednesday morning. Elon Musk said he was wary of its environmental impact.
The trend shifting from bullish to bearish is a common word we hear from majority of the Kenyans who have ventured into the world of crypto currencies.
Open discussions that range from evolution of money, that first started with Barter trade, Gold, Metal Coins, Paper Money, Plastic Cards, Electronic Money then the recent gold coin is the talk among Kenyan Crypto Holders The online wallets holding the Cryptocurrency and the famous Bitcoin are slowly decreasing and according to an observation crypto holders are in a complete state of despair. Crypto trading platforms like Coinbase and Paxful have been infected and suffered a major blow due to the current order flow of crypto currency.
But what next?
The current plunge in crypto prices which analysts attributed to factors such as China’s decision to regulate cryptocurrency due to its volatility’s nature.
China took more steps to crack down on the digital coin The agencies said that financial institutions and payment companies should not participate in any transaction related to Crypto currency nor should they provide crypto –related services to their clients.
The market that is beginning to look speculative represent a sharp reversal of fortune in a market embraced by bitcoin owner’s investors institutions and some of the big banks. Bitcoin lost near Ksh 3.8 million in a volatile session, hitting its weakest since Jan. 27, and has shed about half its value since hitting an all-time high above Ksh 6.7 million.
A steady drift lower that began weeks ago picked up speed after last week, when Musk uttered that Tesla would stop accepting it for car purchases even though the company holds a load of the digital currency asset.
Wednesday’s moves have analysts wondering whether a broad based retreat from the risk sensitive assets is a forecast of something bigger.
According to Macro Investor and Co-founder of real vision financial and crypto TV, he thinks that crypto will go to USD 26.5 million in the next 12 months, he further explains that investors should remember that corrections come with crypto currency territory and if you understand bitcoin you understand its volatility, you understand that 35 % pullback is normal.
This statement is the only remaining hope for crypto Hodlers a term used by long term crypto Holders that came as a result of interchange of words This is quite interesting.
We are open for comments? Sure.
Compiled in Mombasa