After reaching new heights of $58,300 last week, Bitcoin’s spike halted at the weekend as it fell to as low as $45,000, it’s a trajectory that was replicated by ETH, many have cited the tweets of Elon Musk as being a key factor in the fall of digital currency.
Nonetheless, price fluctuations aren’t abnormal according to experts in the industry, with Philippe Bekhazi, CEO and Co-founder of Stablehouse underlining that the stability of the crypto market is deeper than the influence of one person.
He added: “The Bitcoin and Ethereum drop in the last 24 hours was a matter of time, not a matter of if. The upside move was very sustained with very little pullbacks. This is a healthy retracement that we believe is not the start of a crypto winter, far from it. However, we must remember that all crypto assets are not made equal and that some cryptocurrencies will lose luster for the benefit of others. Ethereum for example is battling chronically high fees and congested networks that is significantly putting its utility at risk.
“Although Elon’s comments are clearly having an effect on crypto, this is only short term. We do not believe one person can have a long term effect on Bitcoin. It has been proven many times in the past that that is indeed the case. This may be somewhat different for other crypto-assets.
“The decrease could be a shock for some novice crypto investors but we do not advise on short term moves. We believe in the long term potential of some of these crypto-currencies and with an outlook of say 10 years, investors should do well. Buy major retracements with money you can afford to lose.
“U.S. Treasury Secretary Janet Yellen describing Bitcoin as a “highly speculative asset” shouldn’t scare investors either. The US Treasury Secretary has the dollar and the well being of the US financial system as its primary focus. Bitcoin is more of a threat than an opportunity in her mind. But let’s remind ourselves that Bitcoin is worth less than an Apple or an Amazon. That’s the perspective we should not lose (for now).”
