The world’s largest digital coin slipped to around $ 35,220 from 6:31 p.m. in New York, down 5.3 percent in the past 24 hours. The move extends its downtrend by a second day after a cryptic tweet from Elon Musk that indicated a possible split with the cryptocurrency.
Weibo, a Chinese social media service, appears to have blocked some Crypto Influencer accounts on Saturday citing a violation of unspecified laws and Weibo community rules. While Weibo has cracked down on various cryptocurrency accounts in recent years, the news got beyond the recent tough Chinese regulatory rhetoric that has already caused the prices of many digital coins to drop.
Meanwhile, El Salvador’s President Nayib Bukele said he plans to propose a bill that will make Bitcoin the world’s first legal tender in the country, according to a video message he delivered at the Bitcoin 2021 conference in Miami.
Square Inc. said on Saturday that through a partnership with the blockchain technology provider, it will invest $ 5 million in building a solar-powered bitcoin mining facility at a blockstream mining location in the United States.
The weekends of the past few months have been rocky for crypto trading every day of the week. Ahead of this weekend, Bitcoin’s average swing on Saturdays and Sundays is 5.35 percent this year.
“The weekends have not been bitcoin friendly lately,” said Nicholas Colas, co-founder of DataTrek Research. “There aren’t that many institutional players involved, the market isn’t as liquid as it is during the week.”
Musk has stirred up Bitcoin and other digital coins with his social media posts. On Saturday he tweeted that “goods and services are the real economy, any form of money is simply their settlement.”
Bitcoin is struggling to break its 20-day moving average – it failed on Thursday and Friday – and is struggling to get towards $ 40,000. If the coin broke this round number level, it would likely test its 200-day moving average of around $ 41,500, which many chartists would consider a bullish catalyst.
However, with Bitcoin continuing to fluctuate within a narrow range, a retest of the $ 30,000 level could also be in play until more positive catalysts emerge.
Still, many point out that the crypto space has always been volatile. Its price fluctuations – up and down – are a characteristic of the market, they argue, and many of its long-term investors are not deterred by its volatile daily fluctuations.
“Our investor base has seen market volatility many times and they know this comes with the territory – the ability to have fairly pronounced price movements is native to investing in crypto, especially at this point in the crypto lifecycle,” said Michael Sonnenshein, CEO at Investing in grayscale. “Investors aren’t really getting phased.”
“Sometimes it is very difficult to come up with a basic argument for some of these, so I think that is your main risk,” said JJ Kinahan, chief marketing strategist at TD Ameritrade, over the phone.