The meltdown of bitcoin continues as the ripple effect from Elon Musk tweets keeps wrecking havoc on the cryptocurrency market value which has crashed to $751.12 billion.
The market valuation of bitcoin was over a trillion at the start of May, but since the Tesla founder tweeted about his company dumping bitcoin for another unnamed crypto, there have been panic selling among bitcoin holders.
This volatile sentiment in the cryptocurrency market has caused bitcoin holders $65.23 billion within two days, as the panic selloff dragged the market capitalisation of bitcoin from $816.35 billion to $751.12 billion.
Earlier today, the price of bitcoin also crashed alongside the market capitalisation, after it sold for $38,585.86. The last time bitcoin was traded as low as under $40,000 has been over two months.
The cofounder & chief executive officer of Delta Exchange, Pankaj Balani, had projected – in his reaction to “Bitcoin is Melting” article by Michael Kramer, founder of Mott Capital Management – that the digital asset will fall between $35,000 or $38,000.
His projection comes amid correction to bitcoin price after enjoying a long bull run leading to a price bubble. The decline in price of bitcoin is said to be a retraction to it’s original market price.
“Despite a sharp correction and BTC price trading in the support zone of $42,000-$44,000, we don’t think Bitcoin has found a floor yet,” he stated, adding that, “Unlike the previous dips in Bitcoin – in the last 9 months – this time, we are not finding any buyers looking to bottom fish on a sharp move down.
“Most traders are convinced of further downside and are looking at 35000-38000 levels on BTC.”
By Fakoyejo Ayodeji…
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