Musk said that Bitcoin price does “seem high”
The latest high for Bitcoin clipped $58,000 briefly but is encountering a pullback now after the surge above $50,000 last week. Price has dropped quite rapidly from $55,000 to just below $53,000 and down 8% on the day currently.
The hype that got it through $50,000 was the Tesla announcement at the start of the month here but with price action hitting a snag today, it feels like the latest top is in for Bitcoin – much like its attempt to get past $40,000 at the start of the year.
In some sense, the pullback may be “healthy” and I wouldn’t rule out a potential slide back towards $50,000 or just below that. But given the hype and institutional demand, I reckon dips will surely be bought if the correction extends by 15-20% perhaps.
Goldman Sach’s Jeff Currie recently said that Bitcoin behaves very much like a “risk-on asset” i.e. it is all part of the same factors that represents ‘animal spirits’ in the market. If so, as long as the equities outlook remains bullish, so will Bitcoin in this environment.
But that doesn’t rule out the potential for extra volatility and a deeper correction in an asset that is already extremely erratic to begin with.