Wednesday, May 19, 2021


Bitcoin is down in price for a fifth-straight day.

Currently, the price is down on the day by 18.6% to $35,106.00.  Just weeks ago, the price was $64,829.14. It is now down more thna 40% from that record high.

The collapse started days ago when Elon Musk first announced that Tesla would not be accepting bitcoin for car payments. He followed that up days later with cryptic tweets that suggested he might be selling, or has sold, Tesla's position in bitcoin. Since then, Musk has issued a follow-up tweet indicating that his firm has not sold any bitcoin.

The most immediate cause for the continued price decline is a renewed crackdown on cryptocurrencies from the People’s Bank of China. The central bank issued a statement on its WeChat account reiterating that financial institutions should not accept or deal with cryptocurrencies.


  1. It seems like the meteoric rise of cryptos last year coincided perfectly with the multi trillion dollar money pumping of the Federal Reserve. It looks like that money found the newest sexy technology/fad. Is this a classic bubble Robert?

  2. A few days ago I thought there was a "hidden" reason Musk turned on Bitcoin. Now, IMO, very likely that he was tipped off about the China comments overnight.

  3. Two days ago Musk declared he had not sold any bitcoin. I thought he was talking it down to buy more. We'll find out later.

    But three hours ago it bounced off $29,800, a decline of 54% from its all time high, and has now reached $37469. This is beyond the 40% declines that have occurred many times in its bull runups, but not (yet at least) the 85% decline that typically occurs after each blowoff top. Given the run since last fall with no declines near this magnitude, perhaps it was overdue. A drop like this will result in many bitcoin passing from weak to strong hands, which will be a basis for a continuation of the bull run later this year.

  4. Musk is all smoke and mirrors. With him spending so much time in Texas it wouldn't surprise me to hear that he had made a sizable purchase of silver, with it being an important metal in the "green" movement and considered "poor man's gold".

  5. Three months from now it will be making new record highs.

    Disclosure: I do not own or trade Bitcoin.