Bitcoin Crashes After Weekend Price Surge

Photo Illustration, Kyiv, Ukraine - 29 Jul 2021
Vladimir Sindeyeve / NurPhoto / Shutterstock.com

Renewed support for Bitcoin helped the crypto achieve its highest price since May this weekend, standing at $41,000.The crypto was, however, down 4.24% this morning at $39,770, according to CoinMarketCap.

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Bitcoin has enjoyed some strong backing in the past week from Ark Invest CEO Cathie Wood, Tesla CEO Elon Musk and Twitter CEO Jack Dorsey, who each praised its benefits at the B Word conference, aimed to explain how institutions can embrace Bitcoin and raise awareness around areas of the network that need support.

During the conference, Musk said that Tesla would “resume most likely accepting Bitcoin.” Asked about his hopes for Bitcoin, Dorsey said, “my hope is that it creates world peace or helps create world peace.” And Wood said that she believes that “bitcoin will be much more environmentally friendly certainly than gold mining or the traditional financial services sector,” adding that “in many ways, it already is.”

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In addition, Bitcoin also got a boost and saw a price surge last week, following speculations about Amazon being set to accept Bitcoin as a form of payment by the end of the year. The rumors have been growing following a job posting for a “Digital Currency and Blockchain Product Lead.”

Last month, Bitcoin fell below $30,000 for the first time since June 22, wiping out almost $90 billion from the crypto market in 24 hours — representing a loss of more than 50% from its all-time high of $65,000 in April.

This morning, Bitcoin’s market cap is at $745 billion, a far cry from the $1 trillion valuation it crossed in February.

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“The past eight days seem to have improved market sentiment quite a bit,” Seth Ginns, managing partner at CoinFund, tells The Street. “Bad news is now being absorbed, and good news is causing rallies, the opposite of the trading regime of the past few months.”

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Last updated: August 2, 2021

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