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Date:
23rd Feb 2021
Author:
Dalmas Ngetich, for CryptoAltum News Team

Bitcoin Prices Plunge, Elon Musk Feeds Overvaluation Fears

The Bitcoin price, on Feb 22, fell double-digits. It subsequently wiped billions in an unexpected whipsaw following Elon Musk's comments on Saturday that BTC is overvalued. Plunging BTC afterward weighed negatively on other asset prices. Statistics show that the crypto market lost over $170 billion. BTC/USD price is at around the $50k support.


Details: 

Traders closely track the performance of Bitcoin. As it surges to new levels following investment from billionaires and institutions, comments from an influencer could affect its valuation. Unlike the stock market with unparalleled liquidity, Bitcoin's is relatively thin. Consequently, prices can whipsaw as they did on Monday, reacting to Elon's tweet and comments from Janet Yellen. The Treasury Secretary issued a stark warning saying Bitcoin is an inefficient method of moving value. 


Impact on Bitcoin Price: 

Neutral. BTC/USD prices slumped, and its market cap fell below $1 trillion. Analysts expect more volatility as market forces aim to discover the fair value of BTC. 


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