Tuesday morning, Bitcoin stands just above $10,000, which would seem to be quite a boon for investors who bought in prior to the middle of June. However, Bitcoin has dropped in some 15% or more over the past few days, and that’s giving some traders pause.
Bitcoin notched a high mark of near $14,000 June 26, and performed another spike to $13,000 July 10.
For some insight, Cointelegraph’s Molly Jane Zuckerman asked Mati Greenspan at eToro about some of the price fluctuations recently.
Some are claiming that lower BTC values had something to do with Presidential Tweets over the last few days.
“I am not a fan of Bitcoin and other Cryptocurrencies, which are not money, and whose value is highly volatile and based on thin air,” Trump wrote. “Unregulated Crypto Assets can facilitate unlawful behavior, including drug trade and other illegal activity….”
In going over the tweet with Zuckerman, Greenspan suggested that in reality, for BTC, any publicity is usually good publicity.
“If Donald Trump loves Bitcoin or hates Bitcoin – the fact that he’s mentioning it, basically highlighting the advantages of Bitcoin to the entire world,” Greenspan said, could be good for the coin.
BTC, Greenspan said, rose some 2% directly after the tweet, and subsequent down activity, he feels, would have had to do more with other events more contemporaneous.
“A lot of people like to attribute price action to a news event,” he said, suggesting that some of these connections are ultimately “smoke and mirrors” where price action is actually responding to more tactical market factors.
He urged traders not to confuse short-term and long-term action, and talked about Bitcoin being in a $10,000 to $14,000 range that it might be unlikely to break out of.
Speaking on bigger losses by altcoins like Ethereum, Greenspan said Bitcoin’s market dominance plays a key role.
“Bitcoin is the leader of this rally,” he said, adding that Bitcoin is “consolidating” its market share in the cryptocurrency space. “Most of the excitement has been specifically surrounding bitcoin.”
More recently, U.S. treasury secretary Steve Mnuchin has rattled some investors by making remarks giving ballast to Trump’s negativity. However, the jury is really still out on where BTC is headed. Look for news from regulators like the SEC to make some changes happen.
