132
Published by: Avidity News
Published on: July 21, 2021
__
Bitcoin extended gains past $32,000, continuing a rebound after erasing most of its gains for the year. The latest leg up came in as Elon Musk, Jack Dorsey and Cathie Wood spoke during a panel on the future of Bitcoin.
The largest digital currency rose more than 8% to about $32,270 as of 2:27 p.m. in New York on Wednesday. Other cryptos advanced too, including Ether and Dogecoin, while the Bloomberg Galaxy Crypto Index was also in the green.
Musk, the chief executive of Tesla Inc., reiterated his backing of Bitcoin, saying he owns the token along with Dogecoin and Ethereum. He also said Space Exploration Tecnologies Corp. also owns Bitcoin, like Musk’s electric-car company.
The token bounced back after sliding below $30,000 earlier in the week, its first foray there since June.
“The fear in the market was that if Bitcoin breaks below the $30,000 mark, the price will move lower violently,” said Naeem Aslam, chief market analyst with Ava Trade Ltd. “In reality, that is not what we have seen. The Bitcoin price has been stable, and we have not seen any panic selling.”
Bloomberg picture of bitcoin rebounding
Bitcoin and other cryptocurrencies have tumbled since mid-May, wiping some $1.3 trillion off their market value. Bitcoin has faced a range of obstacles, including stepped up regulatory scrutiny in China, Europe and the U.S. and concerns about the energy needed by the computers underpinning it. Investors have also generally become more cautious about speculative assets.
Bitcoin may still test the $25,000 support level in the coming weeks, Ava Trade’s Aslam said. A break above $32,000 would herald a stronger recovery, according to Steen Jakobsen, chief investment officer at Saxo Bank.
Bitcoin’s advance this year has shrunk to about 8% following a slide from an April record of almost $65,000. That compares with a 15% jump in the S&P 500 index in 2021.
Thank you for reading :)
