Bitcoin Surpasses $ 32,000 After Elon Musk Says He Owns The Coin | Crypto News

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Elon Musk, chief executive of Tesla Inc, reiterated his support for Bitcoin at a conference on Wednesday, saying he owns the token along with Dogecoin and Ethereum.

Bitcoin extended its gains beyond $ 32,000, continuing a rebound after wiping out most of its gains for the year. The latest breakthrough came as Elon Musk, Jack Dorsey and Cathie Wood spoke during a panel on the future of Bitcoin.

The largest digital currency rose more than 8% to around $ 32,270 at 2:27 p.m. in New York on Wednesday. Other cryptos rose as well, notably Ether and Dogecoin, while the Bloomberg Galaxy Crypto Index was also in the green.

Musk, the chief executive of Tesla Inc., reiterated his support for Bitcoin, saying he owns the token along with Dogecoin and Ethereum. He also said that Space Exploration Tecnologies Corp. also owns Bitcoin, like the electric car company Musks.

The token rebounded after slipping below $ 30,000 earlier in the week, its first foray there since June.

The fear in the market was that if Bitcoin goes below $ 30,000, the price drops sharply, said Naeem Aslam, chief market analyst at Ava Trade Ltd. In reality, this is not what we have seen. The price of Bitcoin has remained stable and we haven’t seen any panic selling.

Bitcoin and other cryptocurrencies have fallen since mid-May, wiping out some $ 1.3 trillion from their market value. Bitcoin has faced a series of hurdles, including increased regulatory oversight in China, Europe, and the United States and concerns about the power required for the computers that underpin it. Investors have also generally become more cautious of speculative assets.

Bitcoin could still test the $ 25,000 support level in the coming weeks, Ava Trades Aslam said. A break above $ 32,000 would herald a stronger recovery, according to Steen Jakobsen, chief investment officer at Saxo Bank.

Bitcoin and Ethereum managed to pull themselves together after Bitcoin fell into the key $ 30,000 area yesterday, but really needs to recover over $ 32,000 on a sustainable basis to get out of a hole, Jakobsen wrote in a note.

Bitcoin’s lead this year has fallen to around 8% after falling from an April high of nearly $ 65,000. This compares to a 15% jump in the S&P 500 Index in 2021.

Proponents argue that virtual currency offers a hedge against inflation and will gain wider institutional acceptance. Such accounts have always been controversial and are now even more questioned, although the most ardent Bitcoin fans continue to predict big returns in the long run.

Regulatory and environmental concerns will likely keep Bitcoin heavy, but improvements on both fronts are expected to occur before the end of the year, wrote Edward Moya, senior market analyst for the Americas at Oanda, in a note. He added that institutional investors are prepared to place big long-term bets if a drop to $ 20,000 is avoided.

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