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Latest Events in the Crypto Industry

Bitcoin slides again as Musk U-turn continues to weigh

Bitcoin traded lower on Tuesday as prices pulled back from a double-digit percentage rally, stoked in part by Elon Musk’s effort to bolster the token’s green credentials on Twitter.

The largest digital currency slipped as much as 6.5% to $36,494 in New York, following a 16% jump on Monday

The Tesla Inc. CEO has roiled the token’s price this month, triggering a selloff by criticizing its energy profile and suspending Bitcoin payments. Heightened regulatory rhetoric on cryptocurrencies from China also pressured the sector.

“If the market continues to see wild swings based on Elon Musk tweets, it’s going to be a big set back for this asset class,” said Matt Maley, chief market strategist for Miller Tabak + Co. “The fact that it sees such wild swings to the tweets from one person takes away the legitimacy of the asset class.”

Optimists have however acknowledged just how wild trading can be. “Bitcoin lost more than half its value after peaking near $65K in April,” Stockton wrote in her Monday report. “That serves as a reminder of the volatility inherent to cryptocurrencies.” Volatility won’t go away, but the current correctioneventually will.