On the night of May 13, Bitcoin fell in price to an 11-week low of $ 46 thousand, and the capitalization of the coin dropped below $ 1 trillion.  What does Elon Musk, the US stock market and creator of Ethereum have to do with it, and what factors indicate a likely correction in the cryptocurrency market?

 The largest drop in bitcoin in recent months occurred against the backdrop of a statement by Tesla CEO Elon Musk about a temporary suspension of sales of electric vehicles for cryptocurrency.  The entrepreneur argued that Tesla could not afford to harm the environment, so it would not accept cryptocurrency as payment until it was mined using renewable energy sources.

 The cost of bitcoin on the Binance crypto exchange fell by 17%, to an 11-week low of $ 46 thousand.At 13:00 Moscow time, the cryptocurrency is trading at $ 49.6 thousand, having fallen in price by 13% over the past day.  Bitcoin's market capitalization dropped below $ 1 trillion to $ 929 billion.

 As a result of the drop in quotations, traders lost $ 3.72 billion per day amid the liquidation of margin positions for cryptocurrency.  Over the past 24 hours, the positions of 341 thousand traders were forcibly closed, the largest liquidation occurred in a pair with bitcoin and amounted to $ 38.7 million, according to bybt.

 Another attempt at manipulation
 In this situation, it is difficult to predict where bitcoin will move next, says Artem Deev, head of the analytical department at AMarkets.  In his opinion, if Elon Musk's statement is perceived as a signal for sales for institutional investors, or if one of the major market participants decides to get rid of Bitcoin, then a collapse is possible.

 So far, Musk is not going to sell cryptocurrency assets, recalled Artem Deev, referring to the statements of the billionaire.  According to Deev, in this way Musk could mitigate the consequences for the market or conduct another manipulation attempt in order to bring down the bitcoin rate and buy the coin cheaper.

 Not a mask alone
 Yesterday, not only the words of Elon Musk served as a negative factor for the decline in the quotes of the main cryptocurrency, according to Andrey Podolyan, CEO of the cryptorg.exchange crypto exchange.  In his opinion, this was also facilitated by the fall of the US stock market and the public refusal of the creator of Ethereum Vitalik Buterin from the "assets imposed on him."

 Buterin donated 50 trillion Shiba Inu tokens and 500 Ethereum to fight Covid-19 in India.  The creator of the largest altcoin by capitalization transferred digital coins to the India COVID-Crypto Relief fund.  The transfer amount was $ 1 billion.

 “I do not think that Musk alone is capable of influencing the entire BTC market and all his statements should be treated with skepticism, since he easily refuses his words,” the expert says.

 In the current situation, the bitcoin rate may drop to $ 43-45 thousand, so it is better to postpone the purchase of the main cryptocurrency, advises Andrey Podolyan.

 Correction expected
 In addition to the large amount of news that generates fears and uncertainty, technical factors can also cause a drop in quotations, says Nikita Zuborev, senior analyst at Bestchange.ru.  According to him, the correction was expected for a long time, and its risk became maximum after the cryptocurrency market reached a capitalization of $ 2.5 trillion.  After that, only a pretext was needed to start the correction, the analyst noted.

 Although the current decline has become a good entry point for long-term positions, in the short-term the market is still in a local downtrend, says Nikita Zuborev.  According to him, if Bitcoin cannot confidently overcome and gain a foothold above $ 51-52 thousand, it is likely that the fall will continue with new lows in this quarter.

 - "Dangerous sign for the whole market."  What to watch for cryptocurrency holders

 - "Money loses value."  Why investors buy worthless tokens

 - MoneyGram will allow you to buy and cash out cryptocurrency

С Уважением Любовь Султанова.