On Monday, Bitcoin, Ether and Dogecoin all got a quick boost after Elon Musk said he owned the digital tokens and will not sell them.
As a result of Musk’s tweet, Bitcoin, which had fallen as much as 2.9%, briefly regained its losses before retreating again.
Meanwhile, Ethereum briefly recovered some gains before retreating again. Among the cryptocurrencies tracked on Binance, dogecoin gained 3.8% over the past hour, according to Nairametrics.
Musk is the world’s richest person and chief executive of Tesla Inc. He frequently posts about cryptocurrencies on social media.
Dogecoin, a token created in 2013 as a joke and for which he had become an advocate, is not one of the tokens he sells, he said last May. In October, Musk said he owned Bitcoin, Ether, and Dogecoin.
Once again, he asked on Twitter what the inflation rate is likely to be over the next few years.
MicroStrategy Co-Founder and CEO Michael Saylor responded to Musk, stating, “Weaker currencies are going to collapse, and people will move their investments from cash, debt, and value stocks to scarce assets like bitcoin.”
As Musk responded, “It is not entirely predictable that you would reach that conclusion,” MicroStrategy wrote down its Bitcoin holdings to the tune of $147 million in the fourth quarter after Bitcoin fell in price.
The price of Bitcoin has been fluctuating significantly since January 2022. Price actions show an obvious supply zone in the $45-46K price area, which marks the range’s top and represents the main barrier preventing BTC from retesting the $50-60K channel.
In contrast, a distinct demand region marks the lower consolidation boundary around the $33-35K region.
Prices are stabilizing over the $38K mark, which is the short-term support level. Whether the bitcoin price will continue to consolidate between these two supply and demand zones, with considerable volatility, is not certain given the current state of global uncertainty and existing fears in the market.