Bitcoin Hits 3Month Low and then Rallies on Musk Tweets

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Bitcoin rallied from a threemonth low on Monday in a volatile session that saw investors initially selling and then buying cryptocurrencies in the wake of Tesla boss Elon Musks tweets about the carmakers bitcoin holdings.

In his latest tweet, Musk said Tesla has not sold any bitcoin. That seeming clarification came after weekend tweets hinted that Tesla was considering or may have already sold some of its massive holdings.

Musk has boosted crypto markets with his enthusiasm for the asset class, but has lately roiled trade by appearing to cool on bitcoin in favour of its onetime parody, dogecoin. The gyrations are beginning to spook even steeled traders.

Bitcoin fell more than 9 on Monday to as low as 42,185, its lowest since Feb. 8, but rallied back to around 45,190 as of 0911 GMT.

Ether, linked to the ethereum blockhain, fell to as low as 3,123.94, and then bounced back to 3,540. Dogecoin fell nearly 7, and all three are well under recent records.

A nice pop, but this is small versus the Muskinduced selling that has been taking place lately, said Neil Wilson, chief market analyst at Markets.com. There is nothing new I can say about bitcoin volatile, highly speculative, easy to manipulate; a bubble.

Bitcoin, designed as a payment tool, is little used for commerce in major economies, hampered by high volatility and relatively costly transactions.

The most popular digital currency is now down a third from its record high in midApril and JPMorgans crunching of fund…

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