Hello and welcome to the Overbit Round Up for this week.
After weeks and even months of borderline brutal sell-offs, the crypto market finally showed signs of life on 21 July 2021.
Bitcoin is still down about 50% from its all-time high of almost $65,000, and the rest of the market even worse off. On Tuesday, 20 July, it looked like the downside would continue in a big way, as massive sell-offs took Bitcoin below $30,000 for the first time since June. Obviously, the rest of the market followed suit, approaching if not breaking down below significant range levels.
And yet, just as the market was at its bleakest, crypto continued to surprise us and printed an almost V reversal, with Bitcoin advancing more than 7% and briefly touching $32,000. While some are cheering a return to the bull market, others aren't so convinced it's coming back anytime soon.
Vijay Ayyar, head of Asia-Pacific at cryptocurrency exchange Luno, said Wednesday's price move was likely a "Dead cat bounce," where an asset briefly recovers from a prolonged decline before continuing to slide.
Ayyar expects more downside unless Bitcoin can rise above $32,000-$33,000, with the top cryptocurrency potentially falling as low as $24,000-$25,000.
Nevertheless, a curious spectator might be wondering: Did anything contribute to this price action? Thankfully, we've got at least one answer for you as we go on to our next story.
The price of Ethereum increased Wednesday afternoon after Tesla and SpaceX CEO Elon Musk stated at The B Word conference, presented by the Crypto Council for Innovation, that he owns the cryptocurrency.
After Musk's comment, Ethereum, which was already on the rise earlier in the day, reached its session high. It was last up to more than 12% and around the day's highs.
"One thing you do need to watch out for with crypto, especially Bitcoin, using proof of work, using energy that's a bit too much and not necessarily good for the environment." Musk also reiterated his broad support for cryptocurrency, despite potential environmental hazards, saying,
According to Musk, Tesla will likely resume accepting Bitcoin for transactions as Bitcoin mining is increasingly fueled by renewable energy. Musk also stated that the only publicly traded stock he now owns is Tesla and that he personally owns Bitcoin, Dogecoin, and Ethereum.
Musk also revealed that both Tesla and SpaceX currently own Bitcoin and no other cryptocurrency. The B Word conference was created to "demystify," "de-stigmatize," and "correct the mainstream narrative" surrounding Bitcoin and to encourage its institutional acceptance and use.
Thanks as always for reading Overbit Weekly Round Up, and have a great weekend.