The high-profile coin purchases by corporate entities like MicroStrategy and Tesla were credited in part with pushing up the price of Bitcoin (BTC) throughout the end of 2020 and beginning of 2021.
Allotting billions of dollars worth of Bitcoin to their balance sheets had a knock-on effect on the stock prices of Tesla and MicroStrategy, both of which were subject to 340% and 808% pumps respectively from the moment their CEOs began stacking sats and posting crypto memes.
But the glow afforded Tesla and MicroStrategy by their headline-grabbing Bitcoin purchases proved to be short-lived. After the share prices of both stocks peaked in early February, MicroStrategy shed value on its way to 64% losses, and Tesla went on to experience its worst losing streak in three years after losing 36% in the past three and a half months.
Tesla shares were worth $580 on Monday, down from February’s high of $880. MicroStrategy’s shares were worth $448, down from February’s high of $1,272.
Comparatively, MicroStrategy was priced at $140 prior to its first Bitcoin purchase in August 2020. Tesla shares were worth around $200 in mid-2020 when CEO Elon Musk began tweeting Bitcoin and Dogecoin (DOGE) memes in earnest.
Bitcoin’s ongoing surge amid these stock losses could imply that traditional investors were less willing to gamble on Bitcoin’s continued success than those in the crypto space. Bitcoin climbed in value for two more months before hitting its recent peak of $65,000, and then summarily crashed, eventually going on to record 52% losses before a strong rebound.
Tesla and MicroStrategy’s failure to retain their gains from their Bitcoin exposure, and Elon Musk’s failure to move markets the way he used to, could be a sign that the crypto space is becoming immune to such corporate meddling (or that the weight of the current market crash is too much for even Musk’s influence to reverse).
Ethereum co-creator Vitalik Buterin recently suggested as much, stating that the influence wielded by people like Musk would soon wane over time. “But I do think that the markets will learn. Elon is not going to have this influence forever,” said Buterin.
Bitcoin Forecast and Analysis October 25 — 29, 2021
Bitcoin BTC/USD ends the trading week at 63433, continues to move within the growth and bullish channel. However, while above the local maximum, the quotes are in no hurry to go further up. Moving averages indicate a bullish trend. Prices went up from the area between the signal lines, which indicates pressure from the buyers of the asset and the potential continued growth of the asset’s quotes. At the moment, we should expect an attempt to develop a correction and a test of the support area near the level of 53665. Where can we again expect a rebound and a continuation of the rise in the Bitcoin rate with a potential target above the level of 76505.
Bitcoin Forecast and Analysis October 25 — 29, 2021
An additional signal in favor of the growth of BTC/USD quotes in the current trading week October 25 — 29, 2021 will be a rebound from the lower border of the bullish channel. The second signal will be a rebound from the support line on the relative strength index (RSI). Now the values of the RSI indicator are testing resistance, so it is too early to expect the cryptocurrency to grow directly from the current levels. Cancellation of the Bitcoin growth option will be a fall and a breakdown of the 47055 area. This will indicate a breakdown of the support area and a continued fall in BTC/USD quotes with a potential target below the level of 36605. Confirmation of the development of the bullish movement will be the breakdown of the resistance area and closing of quotes above the level of 67055.
Bitcoin Forecast and Analysis October 25 — 29, 2021 suggests an attempt to support area near the level of 53665. Then, the cryptocurrency will continue to rise to the area above the level of 76505. An additional signal in favor of the growth of the Bitcoin rate in the current trading week will be a test of the trend line on the relative strength index (RSI). Cancellation of the option to raise Bitcoin cryptocurrency quotes will be a fall and a breakdown of the 47055 area. In this case, we should expect a continued decline with a target at 36605.
China Banning Bitcoin Is a Big Mistake, Says Dan Held
- Bitcoin OG, Dan Held, tweeted, “China banning Bitcoin may be the biggest geopolitical mistake of the century.”
- His tweet sparked interesting conversations on the Twitter space, showing that people have varied opinions on the matter.
Dan Held, one of the OG supporters of the major digital asset, Bitcoin (BTC), initiated an interesting topic on Twitter yesterday. He says that China’s decision in banning BTC might be the ‘biggest geopolitical mistake of the century.’
China surprised the crypto space when it suddenly decided to ban BTC in the country. As this ensues, more crypto platforms are exiting the country and continuing their business elsewhere.
Of course, this decision created a massive butterfly effect in the market. There was some period this year that the market saw a drastic change from China’s move.
With that said, as Dan Held said, China’s decision may be a big mistake, indeed.
The Twitter crypto space, moreover, had different opinions on the matter. One account, @CurrencyWar1, said that “China’s CBDC will be the no. 1 digital currency in 2 years.” Another one, @theswampgirlUSA, said that “They [China] want the Chinese digital yuan to be a global reserve currency, not $BTC. Their #cbdc will incorporate #AI and social credit tracking so they can know everything about everyone.”
On the other hand, some are being speculative on the matter. For example, @Nuno_CFerreia said, “China is currently the number 2 holder of BTC… it doesn’t look like they banned it, they just want us to think they did.. the question is, why?”
Meanwhile, some took this as a positive thing. @jdubya said,
For China, yes. But it was the next positive step in the evolution of Bitcoin. It was not meant for one country to control so much of the mining resources. Better world distribution means a stronger network.
In any case, we will see if Dan Held’s opinion is true in the coming months or perhaps years. For now, the public is yet to see how China banning BTC will affect the country and the entire market.
At the time of writing, BTC’s price increased by 0.56% in the last 7 days and trade at around $61,000, according to CoinMarketCap.
Binance Moves 36,306 BTC Worth Staggering $2,214,339,246, Pays Just $3.47 in Transaction Fees
Global crypto exchange Binance just shuffled a 10-figure sum of Bitcoin between wallets as BTC clings to the $60,000 level.
Crypto data tracker BitInfoCharts spotted a massive transaction to the tune of 36,306 BTC – worth over $2.21 billion at the time of writing.
The transaction was first broadcast to the Bitcoin network on October 23rd at 4:41 AM GMT+8. The crypto was sent in a batch that includes a request to send 35,236 BTC ($2.15 billion) and 1,069 BTC ($65 million) along with two other transactions involving less than one BTC.
The Binance wallet that sent the 35,236 BTC was the 24th richest Bitcoin wallet in existence prior to the transaction.
All in all, Binance paid just 0.00005694 BTC in fees, worth $3.47.
Crypto exchanges occasionally move large batches of digital assets around for security purposes.
All of the sending and receiving wallets were identified by BitInfoCharts as the exchange’s cold wallets. Cold wallets are physical hardware wallets that can keep digital assets completely offline. They are generally considered more secure than hot wallets, which are software-based and connected to the internet.