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Elon Musk Predicts Bitcoin Will Increase in Value in the Future

Image Source: Elon Musk @ Instagram

Bitcoin (BTC) faces uncertainty at the start of the week following its lowest weekly close in two years.

The cryptocurrency lost significant value after the recent collapse of exchange FTX, adding to ongoing challenges in the market. This has led to concerns among investors, with many questioning what the future holds as more companies raise issues about their financial stability and regulators increase scrutiny of the cryptocurrency sector.

Despite the prevailing negative sentiment and warnings from industry leaders that the recent events have caused setbacks lasting several years, Bitcoin continues its operations as usual. FTX’s collapse is not the first hurdle the cryptocurrency has faced, and its underlying network remains robust.

Amidst the turmoil, Cointelegraph examines the factors that could impact BTC prices in the coming days as investors grapple with significant losses and continued market volatility.

Market Braces for Impact of FTX Fallout

The FTX collapse has become the primary driver of Bitcoin’s price volatility in the current market environment. The weekly chart reflects this with a significant drop, showing the lowest weekly close since mid-November 2020. At the time of writing, BTC/USD is hovering around this close, displaying a relief bounce after hitting a low of $15,780 on Bitstamp.

The repercussions of the FTX incident are far-reaching, with firms connected to the exchange encountering difficulties. Observers anticipate further repercussions in the days and weeks ahead as the fallout affects more players in the crypto industry.

Exchanges like and Kucoin are under scrutiny for their liquidity, with concerns over potential insolvency. Increased withdrawal activities on these platforms hint at a possible “bank run” scenario as investors rush to secure their assets. Data from CryptoQuant reveals a significant amount of BTC leaving exchanges, a situation not witnessed since early 2018.

Bitcoin Rebounds as Elon Musk Expresses Confidence

With the market in a state of uncertainty, making precise BTC price forecasts becomes challenging. Analysts point to indicators like the moving average convergence divergence (MACD) to assess market trends. Despite warnings of a potential bearish setup, some analysts draw parallels to previous instances like the 2014 Mt. Gox hack, where Bitcoin took almost a year to stabilize after a major shock.

Amidst expectations of a final capitulation in the market, analysts anticipate further price declines, especially for altcoins. Traders are cautious as BTC struggles to hold key support levels, with Elon Musk offering a cautious outlook for the cryptocurrency. Binance’s decision to establish a recovery fund adds a possible short-term boost to prices.

Market Observes Stocks Correlation amidst Quiet Week

The aftermath of the FTX incident has introduced a notable divergence between Bitcoin and traditional stock markets. While crypto assets experienced a significant decline, U.S. equities rebounded from previous losses. This deviation marks a departure from the usual correlation between Bitcoin and risk assets, signaling a potential shift in market dynamics.

As the U.S. dollar fluctuates, the correlation between Bitcoin and equities could offer insights into future market movements. A stronger dollar could influence risk asset prices, complicating the market outlook. The current market scenario suggests a positive divergence between Bitcoin and the S&P 500 index.

Investors Show Confidence as Miner Sales Decline

Despite the market turmoil, data indicates a surge in buying activity among small and large BTC investors following the recent price drop. Mega whales holding substantial BTC balances are increasing in number, suggesting accumulation. In contrast, miners are reducing their on-hand BTC reserves, indicating a lack of selling pressure.

Overall market sentiment took a hit amid the FTX fallout, with the Fear & Greed Index reflecting extreme fear. However, historical trends indicate that such sentiment dips could signal potential buying opportunities, especially for Bitcoin.

This article reflects the opinion of the author and not necessarily the views of As with any investment decision, conducting thorough research is essential to mitigate risks.

Image Source: Elon Musk @ Instagram

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