On Saturday, after potentially positive catalysts from El Salvador and Square Inc. were unable to assuage investor concerns over Chinese regulatory risks, the world’s largest digital coin (i.e., Bitcoin) declined down to 5.3% around $35,220 as of 6:31 p.m. in New York. The move extends its downtrend for a second day after a cryptic tweet from Elon Musk that hinted at a potential split with the cryptocurrency.
Weibo, a Chinese social-media service, appears to have blocked some crypto influencer accounts on Saturday, which cited violating unspecified laws and Weibo community rules. The harsh Chinese regulatory laws have already been a plunge in the prices for many digital coins.
In a Bitcoin 2021 conference in Miami, El Salvador president Nayib Bukele over a video message said that he plans to submit legislation that will make Bitcoin legal tender in the country, which is first in the world.
Still many point out that crypto space has always been volatile. Where its prices swings up and down, which are characteristics of the market, and many of its long-term investors are undaunted by its fickle day-to-day swings.
“Our investor base has experienced market volatility many times and they know that this comes with the territory — the ability for there to be pretty pronounced movements in price are native to investing in crypto, particularly at this point in crypto’s life cycle,” said Michael Sonnenshein, CEO at Grayscale Investments. “Investors don’t really get phased.”
“It’s very difficult to make a fundamental case sometimes for some of these, and so I think that’s your primary risk,” JJ Kinahan, chief market strategist at TD Ameritrade, said by phone.
