Bitcoin Fell Below $50,000 Before Bouncing Back—What’s Next?

Bitcoin Fell Below $50,000 Before Bouncing Back—What’s Next?

Bitcoin prices experienced some notable volatility today, dropping below $50, 000 following a highly visible tweet from Elon Musk and then recovering. The digital currency plunged more than 15% between roughly 6 and 8 p. m. EDT, reaching $46, 294. 72, according to CoinDesk data. This downward movement coincided with a tweet posted by Musk at 6:06 p. m. EDT, in which he announced that Tesla, Inc. would stop accepting bitcoin as payment for the company's vehicles. Explaining this decision, Musk emphasized environmental concerns, stating that while cryptocurrencies hold great potential, the impact they have on the planet cannot be overlooked. [Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.] While bitcoin fell to nearly $46, 000, it enjoyed a prompt recovery, rising above $50, 000 within an hour of hitting its intraday low, additional CoinDesk figures reveal. Since then, it has been fluctuating within a reasonably tight range between $49, 000 and $51, 000. Kiana Danial, CEO of Invest Diva, weighed in on the situation, leveraging technical analysis to help offer a sense of what bitcoin prices might do going forward.