Bitcoin drops 20% in 1 day; historical of $ 100 billion

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Bitcoin faces the second consecutive day of decline on Tuesday (23), shortly after reaching its highest recorded value. The cryptocurrency reached its highest historical price of $ 58,332 last Sunday (21), after which it lost about 20% of its value in less than 24 hours. According to market analysts, the fall is due to a “price correction”, however, the reasons for the measure are still not entirely clear.

The price of bitcoin reached the minimum price of $ 47,780 this Monday (22), effectively registering a loss of more than $ 10,000 in value, being considered a historic daily drop according to CoinDesk data. Although the cryptocurrency partially “turned it up” on the same day, reaching the floor of $ 55,000, it continued to fall and hit the minimum price of $ 44,964 during Tuesday morning (23).

Following the instability of its value, Bitcoin also ended up losing about $ 100 billion in market value, considering all units in circulation. Interestingly, the fact occurred shortly after reaching another recent record: the highest market value recorded by the cryptocurrency, above US $ 1 trillion, last Friday (19). Part of this devaluation is due to the higher sales volume due to the high registered value, however, other factors may have influenced the market, such as Elon Musk’s tweets – again.

Musk published a string of not-so-favorable opinions about Bitcoin last Friday (18), which may have contributed to the eventual downturn. Tesla’s CEO said the cryptocurrency’s value seemed “too high” in a discussion where he compares crypto with fiat currencies: “it’s almost the same bullshit”.

The claims can be considered controversial, as Tesla announced an investment of $ 1.5 billion in Bitcoins in the first weeks of February – which have already generated more than $ 600 million in profit since then. The announcement only confirmed Musk’s influence in the market, as soon afterwards the value of the cryptocurrency resulted in a rise that lasted for weeks and other companies also decided to invest in the category.

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