The month of May was not a great one for the world’s biggest cryptocurrency and June hasn’t shown significant signs of improvement, not to the casual observer at least. Bitcoin had reached highs of over $60,000 but experienced a 40% drop after Elon Musk announced his car-manufacturing company, Tesla, was suspending Bitcoin payments despite having appeared to be advocates and buying $1.5 billion worth of BTC.
BTCUSD Chart By TradingView
Musk also implied the company would be selling its holdings but later indicated that would not be the case. The billionaire has since come under fire for what folks perceive is market manipulation and he has even received threats from the hacker group known as Anonymous.
Musk pointed to Bitcoin mining’s high energy usage but steps are being taken to make it so that mining becomes a much cleaner process in the future.
Ultra-Bullish On BTC
Meanwhile, Blockchain.com’s head of research Dr. Garrick Hileman has encouraged investors to remain bullish amid the fears of a further crash in a recent Medium column.
“And for anyone who missed bitcoin’s runup to $64k we believe now is an attractive entry point to own your first (or more) crypto,” the piece reads.
Hileman’s research points out that crypto, in general, has already started its recovery following El Salvador’s adopting of Bitcoin as legal tender, although the International Monetary Fund has warned there could be costly repercussions.
MicroStrategy’s move to buy even more BTC is also considered to be one of the factors present crypto building towards a recovery. The company’s founder, Michael Saylor, was the one who brought Musk and a group of American miners together to discuss renewable energy mining last month.
And What Of China?
China’s changing stance on Bitcoin is also causing worry but Hileman reckons the country is wasting its early lead in blockchain technology. He admits that, while China cannot bury Bitcoin, crypto will be worse off if the government finds success in suppressing it.
The Chinese government seemed to be in perfect stride with Musk when the country’s Premier announced plans to “crackdown” on Bitcoin mining. China is, of course, the world’s biggest mining hub, and such pressure could significantly affect the coin’s price.
China’s attack on Bitcoin is hardly novel, though. The country has been taking negative stances on the digital asset for nearly a decade now yet that did nothing to prevent it from reaching the heights it did in 2021.
