Bitcoin price plunged from $54,000, losing more than $1,000 while Microsoft founder thinks anyone should watch out for Bitcoin
Bitcoin price plunged to $44,900 within just several hours, from the $54,000 area, losing around $1,000. By now, Bitcoin has printed a green candle and is recovering. BTC is changing hands at $47,167 at press time. Meanwhile, Microsoft founder Bill Gates has issued a warning to Bitcoin buyers looking to follow Elon Musk’s investment strategy. It seems Bitcoin is in a correction phase or being hit too hard for subjective events outside the market.
— Bloomberg Technology (@technology) February 23, 2021
Bitcoin price has plunged by $1,000 in just several hours but it is coming back upward
On Feb. 23, little over two weeks since Tesla’s $1.5 billion acquisition of Bitcoin was announced, the price of Bitcoin fell 20% — from $58,258 to $46,624. At the same time, almost $400 billion was wiped off the global market cryptocurrency market cap. Interestingly enough, the crash occurred just hours after Musk himself expressed the opinion that the then-current prices of Bitcoin and Ether were high. Whether this was a criticism, or an attempt to deflect heat from a possible investigation into Musk’s influence on crypto prices, the entire market plunged in the aftermath.
BTC/USD 4-hour chart | Source: TradingView
Gates suggested that Musk could approach complex commercial management techniques that the average investor didn’t know, Gates told Bloomberg’s Emily Chang.
When asked about Bitcoin’s susceptibility to depreciating in response to a mere tweet, Gates said that Elon Musk was probably isolated from such market malfunctions.
“Elon has tons of money and he’s very sophisticated so, you know, I in worry that his Bitcoin would randomly go up or down.”
Gates said it would be a mistake for the average investor to blindly follow the mania of optimism surrounding Musk’s market moves, telling those who aren billionaires to watch out.
“I do think people get drawn into these manias who may not have as much money to spare. So I’m not bullish on Bitcoin, and my general thought would be: if you have less money than Elon, you should probably watch out.”
On Monday, treasury secretary Janet Yellen slammed Bitcoin by calling it totally inefficient for conducting transactions. The biggest corporations, such as Tesla and MicroStrategy, are showing deep interest, with both having allocated over $1 billion of their shareholders’ money in the king crypto recently.
The Microsoft founder raised the point of Bitcoin’s energy consumption, suggesting that the cryptocurrency didn’t return much in the way of output.
“There are things we invest in in society which produce output. Bitcoin happens to use a lot of energy. It happens to promote anonymous transactions — they’re not reversible transactions.”
According to Gates, digital currencies aren’t necessarily a bad thing, he just thinks they should be transparent, reversible, and essentially, centralized. Gates went on to describe some of the work carried out using digital currencies since the start of the COVID-19 pandemic, noting that the Gates Foundation had used the technology to enable governments to distribute relief funds to their citizens.
You can see the BTC price here.
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