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On Tuesday, Bitcoin price collapsed over 15% leading to the first sharp price correction this year in 2021. However, this happens after Bitcoin surged over 90% year-to-date hitting its new all-time high above $58,300.
On Tuesday, February 23, Bitcoin (BTC) price tanked over 20% moving sub $50K levels from its all-time high of $58,300 earlier on Sunday. BTC price crash came along with the broader cryptocurrency market staying under pressure and losing over $300 billion in 48 hours.
Comments from some of the popular personalities have reportedly weighed-in on the price correction. On Monday, US Treasury Secretary Janet Yellen issued warnings that Bitcoin poses to investors and the public. Speaking to CNBC’s Andrew Ross Sorkin, Yellen said:
“I don’t think that bitcoin … is widely used as a transaction mechanism. To the extent it is used I fear it’s often for illicit finance. It’s an extremely inefficient way of conducting transactions, and the amount of energy that’s consumed in processing those transactions is staggering.”
“It is a highly speculative asset and you know I think people should be aware it can be extremely volatile and I do worry about potential losses that investors can suffer,” she added.
Market Movements amid Pressure on BTC
However, some of the popular crypto industry players have lashed out at Yellen’s comments. While the federal banks continue their massive money printing mania, people have selected Bitcoin as a strong hedge asset. Also, Bitcoin being more liquid than physical gold is getting more attention in recent times.
Even big corporates like Tesla Inc (NASDAQ: TSLA) are exposing their treasury and cash reserves to Bitcoin. In fact, Tesla alone made nearly $1 billion returns from its investment when Bitcoin touched an all-time high. But CEO Elon Musk has been calling the Bitcoin price ‘high’ when it was trading above $58,000.
Michael Saylor: Bitcoin (BTC) Is Not for Spending
On Tuesday, MicroStrategy CEO Michael Saylor, who recently announced a fresh $1 billion convertible note offerings invested in Bitcoin (BTC), appeared in an interview with CNBC’s Squawk Box.
Without holding his word’s back, Saylor said that don’t treat BTC as a currency. It’s just an asset class like Gold. Saylor suggested an invest and forget strategy when it comes to putting money in Bitcoin. During the interview he said:
“Bitcoin is not for spending. If you want to save your money for the next decade, it’s logical to do one transaction. Put all your money in #btc and wait for a decade and wait for it to go up. We are going to see a day when 7-8 billion people have a bar of digital gold on their phone, and they are using it to store their life savings. Bitcoin is a bank in cyberspace,” he added.
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Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
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