Elon Musk announcement sends the price of Bitcoin crashing
Bitcoin suffered a major price plunge this week after Tesla’s CEO Elon Musk announced that the company would no longer let customers purchase electric cars with Bitcoin. Bitcoin tumbled towards the $46,000 level shortly after the statement from Musk, who is known to be a fan of the top cryptocurrency. The Tesla CEO said that the environmental impacts of Bitcoin was the reason behind the announcement. Elon Musk also said that Tesla is looking for other carbon friendly cryptocurrencies to replace Bitcoin, with many analysts speculating that the company could move into Etheruem or Ripple.
- The BTCUSD pair is only bearish while trading below the $53,000 level, key support is found at the $46,000 and $44,000 levels.
- The BTCUSD pair only bullish while trading above the $53,000 level, buyers may test towards the $54,000 and $55,000 resistance levels.
The US dollar enjoyed strong buying interest after the April Consumer Price Index report showed that CPI inflation increased to 0.8 percent. The rise in monthly US CPI was the steepest in nearly a decade and caused market fears of runaway inflation in the world’s largest economy. Core CPI in the United States, which includes more volatile goods such as food and energy, rose by 0.9 percent. Stock markets tumbled on the news as traders and investors factored in that the Federal Reserve may need to act to counter inflationary pressure. The FED’s fund rate priced in an increased chance of a rate increase by December next year.
- USDJPY pair is only bullish while trading above the 108.45 level, key resistance is found at the 109.80 and 110.00 levels.
- USDJPY is only bearish while trading below the 108.45 level, key support is located at the 108.00 and 107.50 levels.
Altcoins surged higher this week, as traders continued to shun Bitcoin and move into other alternative cryptocurrencies such as Ethereum and Litecoin. Ethereum rallied above the $4,000 level for the first-time ever, as traders turned extremely bullish towards the second-largest crypto. Litecoin also advanced to a new all-time high above the $400.00 level before experiencing a strong pullback. The total market capitalization of the cryptocurrency market excluding moved close to $1.5 trillion, while Bitcoin’s market dominance in percentage terms fell towards the 40 percent level.
- The LTCUSD pair is only bearish while trading below the $300.00 level, key support is found at the $280.00 and $250.00 levels.
- The LTCUSD pair is only bullish while trading above the $300.00 level, buyers may test towards the $340.00 and $400.00 resistance levels.
The price of copper hit a new all-time high this week after the red-metal enjoyed strong buying demand over fears surrounding the government in Peru nationalizing the mining sector. The front-runner to become the new President of Peru, Pedro Castillo, pledged to nationalize the mining sector, which means that foreign investment in the mining sector is likely to widely and less copper is likely to be produced. Peru is the world’s second largest copper producer, while it's South American neighbor, Chile, is the world’s largest copper producer.
- The XAUUSD pair is only bearish while trading below the $1,810 level, key support is found at the $1,1800 and $1,790 levels.
- If the XAUUSD pair trades above the $1,810 level, buyers may test towards the $1,860 and $1,890 resistance levels.