Bitcoin is showing signs of recovery and altcoin prices are soaring after a serious market correction last week.
After months of fairly stable gains, the price of Bitcoin slipped toward oblivion last week. After news that China would be cracking down on crypto and Tesla would no longer be accepting BTC payments, the price of Bitcoin fell from around $50,000 to $32,000 on Sunday, May 23rd.
Throughout the week, BTC has slowly been gaining stability. Yesterday, BTC briefly crossed the $40,000 mark; at press time, it was hovering around $38,400. Additionally, Bitcoin’s seven-day chart is turning green: at press time, BTC’s seven-day price adjustment chart was fluctuating between +5% and -5%.
Additionally, the Bitcoin Fear and Greed Index, which tracks how likely investors are to sell (fear) or buy Bitcoin (greed) has eased away from ‘extreme fear’ and to simply ‘fear’, an indication that Bitcoin hodlers are less likely to sell their coins.
While things are looking up for Bitcoin, BTC may not be totally safe from further drops, and its next moves could determine much about where Bitcoin is headed over the next several months.
Can Bitcoin Maintain Levels above $37K This Weekend?
For example, earlier this week, crypto market analyst TraderKoz tweeted that if Bitcoin can manage to sustain levels above $37,000 over the coming weekend, its chances of regaining the $42,000 resistance level will grow. If BTC recaptures $42K, its chances of starting a new rally will also grow. On the other hand, stagnation or downward movement below the $37K support level could see BTC stuck between $30,000 and $35,000.
Part of Bitcoin’s recovery may be due to the fact that Tesla Founder, Elon Musk appeared to voice some interest in the future of Bitcoin. After Tesla ditched BTC payments, citing environmental concerns, Musk said that his company would be exploring “other cryptocurrencies” with lower carbon footprints as possible payment options.
However, Musk tweeted on Monday that he had “Spoken with North American Bitcoin miners.”
“They committed to publish current & planned renewable usage & to ask miners WW to do so,” he wrote, adding that the meeting was “potentially promising.”
Michael Saylor, the Chief Executive of Bitcoin champion investment firm, Microstrategy, revealed that it was he who had organized and hosted the meeting between Elon and Bitcoin mining firms in North America, which included representatives of Argo, Core Scientific, Galaxy Digital, Hive Blockchain, Riot Blockchain, Hut 8 Mining, BlockCap and Marathon Digital Holdings.
“The miners have agreed to form the Bitcoin Mining Council to promote energy usage transparency & accelerate sustainability initiatives worldwide,” Saylor wrote.
The formation of the Bitcoin Mining Council could help to address concerns about Bitcoin’s energy usage that span far beyond Elon Musk and Tesla. BTC’s reputation as a weapon of carbon-heavy capitalist machinery has been brewing for years, but seemed to come to a head in 2021 as the price of BTC, and Bitcoin’s media presence, grew to unprecedented highs.
“With the Huge Moves Down in BTC and ETH, Very Little Was Spared in Alts.”
However, as Bitcoin’s price is continuing to gain a stable footing, altcoin prices are soaring.
As has become somewhat typical for the cryptosphere, the price movements of Bitcoin have been magnified across altcoin markets. When Bitcoin fell, altcoins fell even further; now that Bitcoin is regaining stability, altcoins are performing fantastically.
