LMAX Group’s Joel Kruger evaluated the current decline of Bitcoin and other cryptocurrency markets on Twitter, saying the correction was not really caused by Elon Musk.
Reasons for Bitcoin’s Decline
LMAX Group strategist Joel Kruger believes that the correction witnessed by the cryptocurrency market is not very relevant to his recent tweets, such as Elon Musk’s implication that Bitcoin was not green or Tesla could sell his BTC.
Legendary commodity trader Peter Brandt said on May 2 that a significant correction will eventually occur, if not this month or this year. On Monday, Brandt hinted that the current pullback is the biggest correction since March 2020, and that the correction in question could be what he expects to happen.
According to Kruger, the real reason behind the huge decline of Bitcoin, Ethereum and other cryptocurrencies is the technically excessive expansion that cryptocurrencies have experienced after major rallies in recent times. Other reasons are growing concerns about US inflation and a possible tension.
Long Term Bitcoin Owners Buying From The Bottom
Amsterdam-based prominent cryptocurrency trader and analyst Michael van de Poppe tweeted that in the midst of the current Bitcoin sale initiated by short-term BTC holders, long-term owners bought at the bottom.
Glassnode data revealed that the Bitcoin balance in cryptocurrency exchanges rose to a four-month high with a total of 2,538,742,016 BTC. The previous peak takes place on January 18 at the beginning of this year.
Cryptocurrency trader Lark Davis tweeted that the BTC drop was handled by panic sellers.
Bitcoin Dips to $ 42,000, Stays Stable at $ 45,000
Along with Elon Musk’s tweets and Tesla’s threats to sell Bitcoin assets, Bitcoin hit a three-month low on May 17, seeing $ 42,300. It then remained steady in the $ 45,000 zone.
Bitcoin dominance fell below 40% and is trading at $ 42,944 as of the time of publication.