Bitcoin was close to $40,000 this week because “Dogefather” Elon Musk caused pure pain to the holder-what can be next?
After a painful weekend for many cryptocurrency investors, Monday set the next chapter of the 2021 bull market.
Many factors shaped the “future” of Bitcoin and Altcoins.
The activities of Elon Musk adversely affected Bitcoin and altcoins.
Due to the news that Tesla stopped BTC payments for its products, BTC/USD was immediately sold.
On Monday, Bitcoin’s overall market value share fell below 40% for the first time since June 2018.
Due to the upcoming Bitcoin price pressure, the dominance was hit hard, and altcoins like Ethereum have benefited from it.
However, even after falling to $42,000, Bitcoin is more attractive to miners than ever. Bitcoin’s network security is more reliable than ever.
In recent weeks, both hash rate and difficulty have miraculously recovered. Their historical highs have been restored after miners’ flushing caused its short-term price plunge.
It turns out that the weekend is no different. With the average weekly hash rate exceeding 180 hash per second for the first time.
When the subsequent automatic adjustment is made within 11 days, the difficulty is still expected to increase by 10%. The last adjustment last Friday was 21.5%, the most significant positive change since June 2014.
The dollar rebounds at the support level
After the plunge late last week, the strength of the U.S. dollar has recovered. The U.S. dollar currency index (DXY) rebounded from common support levels-a substantial rise is bound to cause trouble for BTC/USD.
At the same time, Chinese stocks are bullish, but European and American stocks have performed equally. The coronavirus has joined the melting pot, with local peaks in some jurisdictions and fewer in others.
However, among traders, inflation is a critical issue. Since the blockade and other restrictions, the widespread global rebound has created trouble for implementing reforms.
After a year of skyrocketing stock markets, interest in profit-taking would continue to increase.
However, a companion survey showed that the majority of 35,000 respondents believe that BTC/USD will still reach US$100,000 this year.