Bitcoin continued its decline on Saturday after potentially positive catalysts from El Salvador and Square Inc. failed to allay investor concerns about Chinese regulatory risk.
The world’s largest digital coin slipped to around $ 35,220 as of 6:31 p.m. in New York, down 5.3% in the past 24 hours. The move extends its downtrend by a second day following a cryptic tweet from Elon Musk who indicated in the event of a possible split with the cryptocurrency.
Weibo, a Chinese social media service, appears Suspending some crypto influencer accounts on Saturday, citing a violation of unspecified laws and Weibo community rules. While Weibo has crazy On various cryptocurrency accounts in recent years, the news came on top of the recent tough Chinese regulatory rhetoric that has already resulted in the price of many digital coins falling.
Meanwhile, El Salvador’s President Nayib Bukele said he plans to propose a law that will make Bitcoin legal tender in the country, according to a. the first in the world Video message he gave at the Bitcoin 2021 conference in Miami.
Square Inc. said On Saturday, 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. Before this weekend, Bitcoin’s average swing on Saturdays and Sundays is 5.35% 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 has 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 it 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 of Grayscale Investments . “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.
– With support from Kenneth Sexton and Claire Ballentine