Things continue to be bearish for Bitcoin as it sees nearly 2 weeks of gains wiped out in just 5 days of correction. From a high of $58,300 the price has seen a 24% drop to $44,000. A slight rally has brought the price back to $45,400 at time of writing.
Only two months into the year and Bitcoin is already posting its second big correction. The first correction in January recorded a 31% drop before reversing and going up to the $58,000 all-time-high.
Corrections are all part and parcel of the Bitcoin trajectory, and the same for any asset come to that. This particular correction comes on the back of some fairly bearish comments by Bill Gates.
The Microsoft founder Gates, said last night, while speaking on the social media app Clubhouse, that he preferred to invest in businesses “that make products”.
Gates had also expressed his scepticism earlier in the week when he had remarked to Bloomberg that he was “not bullish” on Bitcoin, and he also warned people against buying into the mania surrounding the number one cryptocurrency, stating:
"If you have less money than Elon [Musk] you should probably watch out,"
Elon Musk himself has put forth some quite conflictive statements. To begin with, over several months he has talked up Bitcoin on his Twitter. Bloomberg recorded Musk’s bullish tone:
Bloomberg. Taken from a recent Telegraph article.
However, last Friday Musk tweeted in a reply to Peter Schiff that Bitcoin was “almost as BS as fiat money”, a somewhat bizarre remark from someone whose company had recently bought $1.5 billion of the cryptocurrency asset.
Tweets and other social media emittances aside, Bitcoin will continue to do its thing. Corrections are always going to happen, whether a particular celebrated person gives their opinion or not. It remains to be seen though just how deep this current correction will be.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.