The cryptocurrency market is seeing yet another turbulent day, following Elon Musk tweets about dogecoin and new record highs for ethereum.
After bitcoin recovered some of the losses it has suffered in recent weeks, its price has been relatively stable. Nearly all other major cryptocurrencies experienced some gains over night, most notably cardano (ADA), which rose by more than 8 per cent.
Much of the focus has been on dogecoin, after another cryptic tweet from Elon Musk on Wednesday. He referred to himself as the “Dogefather” in a post, and referenced his appearance on SNL next month – while it wasn’t clear what he had planned, it was enough to push the price up almost 20 per cent.
gecoin, after another cryptic tweet from Elon Musk on Wednesday. He referred to himself as the “Dogefather” in a post, and referenced his appearance on SNL next month – while it wasn’t clear what he had planned, it was enough to push the price up almost 20 per cent.
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Bitcoin price prediction: ‘New all-time high in May’
Bitcoin’s price has been all over the place in the last two weeks. After hitting a new record high in mid April above $64,000, it subsequently crashed to below $48,000.
It has since recovered somewhat and has been relatively stable over the last day or so, trading at around $55,000 on Thursday morning
We’ve reached out to an expert to hear his thoughts on what caused these wild fluctuations, as well as his prediction for where bitcoin might go from here.
“Bitcoin’s price has always been volatile and unpredictable, but the last few weeks have brought truly erratic behaviour,” Greg Waisman, the co-founder and COO of the global payment network Mercuryo, told The Independent.
“It started with the Turkish Central Bank’s announcement that using crypto as a means of payment will be banned starting on 30 April. This news knocked the coin down from its highest levels - $64,863 yet to $55k. After that, it dropped further due to expectations of increased capital gains tax in the US, and then even further after Tesla sold 10% of its BTC at $54,092.
“The recovery came as well after Elon Musk explained the point of the sale — to prove the liquidity of bitcoin as an alternative to holding cash on the balance sheet.
“In days to come, BTC is likely to see another drop when the Turkish ban actually arrives. However, after that, the coin should be able to start recovering properly from the level of $48,000. On the other hand, the beginning of the month often leads to price surges, so it would not be surprising for BTC to make an attempt to return to its ATH in early May.”
Ethereum price hits new all-time high
Just to add to the cryptocurrency market excitement today, the price of ethereum has just hit a new all-time high.
The world’s second most valuable cryptocurrency hit $2,736.18, according to CoinMarketCap’s price index, and was still rising at the time of writing.
Less than one year ago, ethereum was trading at less than $200, meaning the latest price record represents an increase of more than 1,200 per cent.
Ethereum has been bucking market trends in recent weeks, having hit a series of all-time highs despite bitcoin and other cryptocurrencies crashing. We asked some analysts why this might be – here’s what Sergey Nazarov, co-founder of smart contract network Chainlink, told The Independent: