Beware the Bears — May 17

Chart of the Day

Bear claws are showing. Bitcoin’s market dominance has briefly plummeted below 40%, a level not seen since early 2018. The market dominance of BTC fell along with its price, which nosedived below $43k, after Technoking Elon Musk backpedaled on his support of Bitcoin, citing concerns over the environmental impacts of Proof of Work (PoW) mining. The price drop is further exacerbated by Musk’s recent tweet insinuating that Tesla may dump its Bitcoin holdings, despite reaffirming last week that he and Tesla will continue to hold. Well, if true, it won’t be the first time that the billionaire recants. The hype quietens down and clear thinking prevails. Perhaps, take some time to rethink what your instinct tells you — Bitcoin doesn’t necessarily need to move up for you to profit, it just has to move.

Talk of the Town

Indeed. The once-fervent and, not to mention, most influential Bitcoin supporter, may have used his charm against the coin and its followers. Although it remains rather ambiguous as to which part of the hypothetical scenario Musk is agreeing, the shadow of doubt alone is enough to tank the morale of the entire community as the broader crypto market experiences a bloodbath, with only a handful of survivors.