Expert explained the instability of bitcoin by the emotions of crypto – enthusiasts
Crypto rate fluctuations are associated with high-profile news and sentiments of speculators. This opinion was expressed on May 23 by Sergei Romanchuk, president of the Russian branch of the International Association of Foreign Exchange and Money Market Professionals ACI Russia.
“The volatility that is inherent in crypto – assets is their peculiarity, because their price is determined primarily by the mood of crypto-enthusiasts, which can be spurred by certain influential individuals,” RIA Novosti quoted him as saying.
According to the expert, it makes no sense to link changes in bitcoin rates with the stock and currency market, because the cryptocurrency market has an emotional atmosphere. For example, the expert explained, the bitcoin rate rose after the decision of Ilon Musk and the company Tesla to invest in the cryptocurrency.
Earlier in April, the value of bitcoin set a new all-time high of $62.7 thousand. This happened after Ilon Musk’s company Tesla reported an investment of $1.5 billion in the cryptocurrency.
On May 13, Ilon Musk wrote on his Twitter that Tesla suspends the cryptocurrency bitcoin as a means of payment because of the unenvironmental way of obtaining it.
Against the background of the entrepreneur’s statement the value of bitcoin on the cryptocurrency exchange Binance was falling to an 11-week low of $46 thousand, the market capitalization of bitcoin has fallen below $1 trillion.
The next day, Musk said he had gotten involved in the development of the cryptocurrency Dogecoin, calling it “a potentially promising project.”
According to financial analyst and trader Artem Zvezdin, Elon Musk is abusing the trust of his audience and investors. In his opinion, the U.S. Securities and Exchange Commission should pay attention to Elon Musk’s actions long ago.
