Bitcoin, Ethereum, bounced from weekly lows as Elon Musk revealed SpaceX Bitcoin holding. The digital assets gained after Cathie Wood and Jack Dorsey also expressed bullish views.
Earlier in the trading week, the Bitcoin price tested the $30,000 support and it happened so many times in the past two months. At one point during this trading week, it broke below.
However, investors quickly bought the dip. As it happened, the B Word Conference started – a conference that points out how institutions can embrace Bitcoin.
Several high-profile CEOs and managers participated. The most famous ones, Elon Musk of Tesla and SpaceX and Jack Dorsey of Twitter and Square, are known for their investments in the digital space. Cathy Wood manages several hedge funds with exposure to companies that invested in the crypto market.
Both Tesla and Square are known for holding Bitcoin. In the first quarter of the year, Tesla invested $1.5 billion in the crypto asset, while Square bought $500 million worth of it. The two CEOs expressed their hawkish view on the digital space, triggering a sharp bounce from the lows and a revival of the cryptocurrency market.
SpaceX Holds Bitcoin, Musk Reveals Ethereum Holding
One of the big surprises of this conference was Elon Musk revealing that he had personally bought Ethereum and Dogecoin. While he did not specify any amount, this statement was enough to generate hype among crypto fans.
As such, Ethereum bounced from its support level at $1,700 and quickly reached the $2,000 level. A move above $2,200 would signal further strength.
SpaceX is another company run by Musk. Because it is not a public company, it does not reveal its financial performance and assets, so market participants do not know how much Bitcoin it holds. Yet, only the mentioning of its Bitcoin holding was enough to trigger a move back above $32,000.
Moving forward, Bitcoin needs to regain the $40,000 level for the bearish bias to turn bullish. While the hawkish interventions this week did help the price recover some of the losses from the second quarter, more is needed for the bearish bias to turn bullish. After all, market participants did sell heavily in the second quarter, when the price dropped by more than 50%.