Bitcoin (BTC) fell to $ 44,000 on Friday (26) and is headed for the biggest weekly price devaluation in almost a year. In the same week that the cryptocurrency reached its all-time high of $ 58,000, the asset also fell 32% to today’s low. Depending on Sunday’s closing, this is expected to be the biggest retraction since March 2020.
After dropping below $ 45,000 this morning, as the index points out CoinDesk, the cryptocurrency has regained some strength. Even so, the asset lost 9% in value in the last 24 hours.
Comparing the opening prices last Sunday with today’s price of crypto, it is already approximately 22% devaluation. In the second week of March 2020, the same variation was -33%. To date, the current cumulative decline is the biggest weekly retraction since then.
However, if we compare the lows and highs of the week, bitcoin plummeted from the price record reached on Sunday (21) to the lowest value recorded on Friday, representing about 32% devaluation.
The reasons for the fall
This week alone there have been several events that have taken the price of bitcoin down, and some that have taken it up. However, even with the purchase of more than $ 1 billion in BTC by two large companies, the balance is still negative for the performance of the cryptocurrency.
Elon Musk says bitcoin price would be too high
Chronologically, it all started with Elon Musk’s speeches on Twitter last Friday (19). In response to questions from the CEO of Binance, the Tesla owner stated: “To be clear, I am not an investor, I am an engineer. I don’t even have publicly traded shares other than Tesla. However, when the fiat currency has negative real interest, only a fool would look elsewhere. Bitcoin is almost the same nonsense as a fiat currency. The keyword is ‘almost’ ”.
However, the part that bitcoin would be “almost the same nonsense as a fiat currency” was quickly highlighted by users and the market. In addition, over the past weekend Musk responded to a follower saying that the price of bitcoin (BTC) and ether (ETH) would be too high.
U.S. Treasury Secretary says bitcoin is inefficient
“It is an extremely inefficient way of conducting transactions,” said Janet Yellen, US Treasury Secretary on bitcoin on Monday. On that same day, the cryptocurrency depreciated by more than $ 10,000 and suffered its biggest daily drop in history.
In addition, Yellen criticized the asset saying again that it would facilitate illicit activities. She concluded her speech by saying that cryptocurrency will never be used as a bargaining chip and that “the amount of electricity consumed in processing transactions is impressive.”
Bill Gates tells investors to “be careful” with bitcoin
This same Monday, Bill Gates also spoke about cryptocurrency in an interview. The founder of Microsoft has never shown himself to be a fan of bitcoin, but this time he issued a warning to investors: “If you have less money than Elon Musk, you should probably be careful.”
“Elon has a lot of money and is very sophisticated. I’m not concerned if your bitcoins will randomly go up or down. But I think that people attracted by this euphoria may not have that much money available, ”explained Gates. Finally, he also raised criticism of the practical use of cryptocurrency, saying that its energy expenditure is too great.
Stock market suffers casualties and affects bitcoin
A wave of sales in the traditional financial market took place this week. The stock prices of tech giants like Amazon, Google and Tesla fell last Thursday (25). Bitcoin, as a crypto, also suffers external influences and ended up being affected by the loss of the big players.
The work as a whole has so far been extremely unfavorable for the cryptocurrency, which, therefore, may face its biggest weekly price devaluation in almost 1 year.
With information: CoinDesk