Elon Musk Revives Bitcoin, Still, Downside Risks Remain

The world’s most popular crypto enjoyed some relative bullish sentiments having returned above $32,0000 in the early hours of Thursday after the flagship crypto tested the $29,500 support levels for the second time and successfully bounced back amid significant buying pressures.

Bitcoin bulls are riding the price wagon high, most especially as the world’s influential tech billionaire, Elon Musk, Twitter’s founder Jack Dorsey and Cathie Wood spoke on the future of Bitcoin.

The 50-year-old tech billionaire reiterated his backing for the flagship crypto, saying he owned Bitcoin, Ethereum, and Dogecoin. Elon Musk also disclosed that SpaceX also has Bitcoin holdings like Tesla.

The move marks a swift reversal from bearish bias that dominated the crypto-verse over the past few days after Bitcoin dipped below the $30,000 mark dragging many other altcoins into the red.

Leading altcoins are also seeing some form of recovery, with Ethereum breaking above $2,000 on the FTX exchange, as it posted daily gains of about 7.5% on Thursday morning. Other notable gainers include Dogecoin posting gains of about 8%, while XRP traded near 59 cents as it posted gains of 7% for the day.

Still, market sentiments still remain relatively nervy, on weak trading volumes at the Crypto derivative market amid fears that a spike in the Delta variant of COVID-19 and soaring U.S dollar would once again pause the full recovery of the global economy.

Also, price action suggests the flagship asset is not out of the wood yet, as increased regulatory scrutiny in China, Europe, and the U.S gains momentum further pre-empting it might still test the $25,000 price levels in the coming weeks, although a break above $35,000 could discount such narrative.