Bill Gates in his recent interview with Bloomberg said he is not bullish on Bitcoin as a commodity and believe people investing in the top cryptocurrency should watch out given the recent price volatility has led to a price crash of over 20% from its all-time high of $58,457 recorded just a couple of days ago.
Gates was responding to a question about Bitcoin’s price volatility and how a tweet from Elon Musk has sent the price up by nearly 10% last month. Gates believes for someone like Elon Musk the price volatility should not matter much, but people following the frenzy and buying into the trend should watch out.
Only a couple of days back when Bitcoin was soaring new all-time-highs, Gates in an interview with CNBC had said that he is neither bullish nor bearish on Bitcoin and maintains a neutral stance. However, the recent price slump seems to have led to a change of mind for Microsoft’s founder.
Tesla stock prices also slumped to a new record low reaching levels lower than its S&P 500 listing price. Elon Musk had also received a lot of flak for his bitcoin investment and tweets that many believe have led to price fluctuation.
— Joe Weisenthal (@TheStalwart) February 22, 2021
Musk had to clarify his stance that his actions are not directly reflective of the company’s stance.
To be clear, I am *not* an investor, I am an engineer. I don’t even own any publicly traded stock besides Tesla.
However, when fiat currency has negative real interest, only a fool wouldn’t look elsewhere.
Bitcoin is almost as bs as fiat money. The key word is “almost”.
— Elon Musk (@elonmusk) February 19, 2021
Does Bill Gates Lack Basic Understanding of Bitcoin?
Bitcoin price today tumbled below $50,000 registering a new daily low of $45,500 and Musk’s reaction seems to be more based on the current market trends. However, many veteran crypto traders would differ with Gates as a pullback of 20% in a bull run is considered normal. Bitcoin registered a similar price crash last month after topping $42,000 and crashing to $30,000 and remained under $35,000 for most of January.
Bill Gates also seems to be not much aware of how the Bitcoin market behaves based on his comments during the interview as he reiterated claims often put forward by naysayers suggesting Bitcoin does not have any intrinsic value. He also claimed that even though Bitcoin has brought decentralization and digital payments to the forefront, price volatility is an issue for newcomers.
The post Bill Gates Claims People Investing in Bitcoin Should Watch Out As Bitcoin Price Slumps Below $50,000 appeared first on Coingape.
BTC price dropped from $58,000 to $48,000 yesterday. This $10,000 drop was the biggest drop in the history of this asset.
A $10,000 drop is concerning from many angles. Is this the indication of a local top or was this just a healthy pull back? Let us review various charts to find out the implications of this drop and where could BTC price move. This move by BTC took the crypto market cap down by $200 billion in a single day.
First, let us look at the BTC/USD LONGS
There was a significant drop in the number of long positions on BTC as per the data by Bitfinex. Similar drops were found across other exchanges.
BTC Exchange Inflow
As per the data by CryptoQuant, over 28,000 BTC arrived on spot exchanges making it the single largest inflow in an hour since December 2017.
BTC/USD HOURLY BULLISH DIVERGENCE
On the hourly chart it can be clearly seen that the price is falling while RSI is rising. This is a clear indication of a bullish divergence which is technically followed by a rise in price.
BTC/USD Price Prediction
BTC is currently trading just above the support zone of $48,600. Below this support there is another weak support at $46,250. As long as BTC stays above these two support zone, we should see bounce back. In order for BTC to be bullish, it has to quickly reclaim the $53,000 zone. If BTC can do that and flip $53,000 to support, we could start seeing a move towards $67,000. Failure to hold the support at $46,250 could open the door for a drop towards $40,000.
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