Bitcoin Suffers Severely, as Flagship Currency Hits 3-Month Low Price of $42,212

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The price of Bitcoin fell to a 3-month low earlier today, hovering just above the $ 42,000 level in a panic-stricken day for the crypto World.

Many believe and have attributed this crash to a recent spat of trigger-happy posts on Twitter by billionaire and Tesla boss Elon Musk. However the price soon rebounded to rise above $45,000 when the total correction from last month’s high reached more than 30 percent, the biggest correction of this bullish season.

While many Bitcoin advocates believe that the recent market shakeup is not out of the ordinary, the unusual inflow of currencies continues to rise, which could indicate another downtrend in the near term.

BTC Price’s Scary Plummet

During the weekend, on Sunday precisely, Elon Musk’s tweet sent Bitcoin (BTC) and the entire crypto market into a tailspin, with the latter losing more than 10% in a sudden drop.

However, the SpaceX CEO seemed to have rectified that drop as his most recent tweet has once again helped keep Bitcoin’s losses to a minimum. Following Musk’s confirmation, the price of Bitcoin jumped by $2000, from under $ 43,000 to close to $ 45,000.

Clearly, Elon Musk wields a lot of power over Bitcoin and the entire crypto sphere. Bitcoin critic Peter Schiff questioned whether Bitcoin is a “safe haven asset” or a “store of value” if a single tweet could cause investors to panic.

Despite Elon Musk being forced to correct that Tesla was yet to sell any Bitcoin, it does not rule out the possibility of a sale in the immediate future.

Buy the Dip?

Following this development with BTC’s price action, many Bitcoin proponents are asking investors to buy the ongoing dip. Bitcoin veteran like Anthony Pompliano said they are buying the dips amid all the FUD.

CEO of the the world’s largest cryptocurrency exchange, had to wade in with his thoughts to quell the panic, tweeting:

Bitcoin/crypto have not changed. They don’t care.

There are always fluctuations in the market, for all kind of reasons. You can blame others for what they tweet (their freedom). Or you can take advantage of the opportunities.

Not financial advice.

It is also important to note that Bitcoin’s current fear and greed index has dropped to 27, suggesting great fear in the market.

However, according to market analyst Wu Blockchain, this is much better than the fear of the past few weeks.

“The current BTC Fear/Greed Index is 27, which is in a state of fear, but it is a increase from yesterday’s index of 20. The BTC Fear/Greed Index on March 13 last year was only 10, and it remained below 20 for nearly two weeks,” tweeted the expert.

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Meticulous to a fault.

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