Bitcoin price pumped and fell again immediately after Tesla CEO Elon Musk spoke positive about BTC on Clubhouse.
Musk praised Bitcoin and said it is now ready for wider adoption. He was “late for the party” – which suggests that he is now a Bitcoin enthusiast.
So why did Bitcoin respond with a decline?
On Sunday evening, January 31st, Elon Musk, CEO of Tesla and SpaceX, appeared on the popular Clubhouse app to discuss various topics. During the conversation, Musk was asked for his thoughts on Bitcoin. He said:
“At this point, I think Financial Peak is a good thing. I am an advocate of bitcoin. I’m a late caller, but a supporter. Bitcoin is on the verge of widespread acceptance among traditional finance people. ”
But despite the positive sentiment surrounding BTC, the price fell from $ 34,400 to below $ 33,800 in minutes.
According to analysts at IntoTheBlock, BTC saw its largest deposit on centralized exchanges in over four months last Friday. This trend coincides with BTC’s near-term rebound from $ 32,200 to around $ 33,800.
Before the interview, traders and analysts expected that this would increase the BTC price
A pseudonymous crypto trader known as “Loma” wrote that Bitcoin rose in anticipation of Musk’s Ask Me Anything (AMA). He added:
“I’m not saying you should longe him or anything. Just that if you’re bearish, you could be better off in a few hours. $ BTC (and consequently the rest of the market) is moving upwards in anticipation imo. ”
Bitcoin enthusiasts expected Musk to mention BTC – following his Twitter bio change and liking a DeFi-related Twitter post.
If Musk talks about Bitcoin on Clubhouse, analysts say , Bitcoin ( How To Buy Bitcoin From eToro ) could see a Friday-esqe rally. Since BTC rose 14% in two days.
But there are several worrying on-chain indicators that signal a weakening trend.
Neko, a semi-pseudonymous crypto trader, comments that the premium on Coinbase was on the decline. This typically signals a decline in US buyer demand.
“BTC Coinbase Premium Index * The gap between Coinbase Pro price (USD pair) and Binance price (USDT pair), indicating strong spot buying pressure from Coinbase when the premium is high. * The current price exceeds the premium, which is a little worrying compared to last week. “
Presumably, due to lackluster on-chain fundamentals, Bitcoin pulled back when the highly anticipated event occurred where Musk talked about Bitcoin.