An Elon Musk tweet in May suggesting Tesla would no longer be taking Bitcoin as payment, sent prices of the cryptocurrency crashing. New data now shows that Bitcoin is staging a comeback and its price could hit $85k soon.
Bitcoin’s price bounceback comes as the price of several leading cryptocurrencies dropped in the last 24 hours.
Ethereum, which set a record price of $4,300 just last month, fell 2.5% to drop below $2,500 and was down more than 7% on Friday morning.
Ripple’s XRP coin, which hit $1.91 recently, dipped 2% to less than 87 cents and is down 10% in a week.
Much of Bitcoin’s price fall was largely influenced by Elon Musk’s tweets and fears around President Biden’s announcement at the G7 Summit on how the US will tackle cryptocurrency in relation to recent ransomware attacks. All these, according to DecenTrader, are holding Bitcoin’s price down for now.
After spending almost a month below its 200-day moving average (DMA), Bitcoin, however, seems to be recovering.
“We received the same signal yesterday, suggesting that $BTC price was oversold relative to active addresses on-chain and could now be ready to bounce back over the coming weeks,” an update from DecenTrader explained.
While there are hopes that Bitcoin will still hit $100,000 this year, it may only be a matter of months before the crypto is back on its feet as its Stock to Flowline currently sits at $85,000.
Also Read: Beyond Dogecoin: 7 Popular Cryptos with Lower Transaction Fees
Why’s Bitcoin bouncing back?
One of the reasons has been attributed to Elon Musk’s recent tweet. The Tesla CEO on Sunday tweeted that the electric carmaker will resume allowing Bitcoin transactions when miners who verify transactions use more renewable energy.
The tweet saw Bitcoin’s price surge 9.8% to $39,035.47 on Sunday, adding $3,492.71 to its previous close.
Musk suspended Bitcoin last month due to concerns about fossil-fuel usage for Bitcoin mining and transactions, a decision that saw the world’s biggest and best-known crypto, fall more than 10%.
As history has shown, a Musk tweet can often change momentum and can dominate the narrative for days or weeks. If Musk’s tweets about Bitcoin remain in the positive light, Bitcoin’s price is poised to surge even higher and hit more than the $85k projection mark.
