The crypto market has demonstrated its ability to recover even in the most complex economic and financial scenarios the world has gone through over the years.
Tesla’s digital assets could be evaluated from a financial perspective. Although they are a significant value, they have not had the expected impact since it is only the news at the wrong time; this already happened a few days ago. For trading in cryptocurrencies, always choose software like BITCOIN-ERAAPP.COM.
It is important to note that if cryptocurrencies are volatile, then opinions through the social networks Elon Musk will always have some short-term effect on crypto assets.
Bitcoin instability factors
It was usually considered that macroeconomic or external factors to digital currencies had no effect on the prices and developments over time, but 2022 completely changed history.
The factors that traditionally affect the displacement of cryptocurrencies in the price curves are described below.
Bitcoin mining difficulty adjustment (hash rate)
It is usually one of the most common adjustments generated in Bitcoin mining; it is executed when there is a greater demand for the crypto active, indicating that more mining equipment is joining the network.
In turn, it drives the creation of digital currencies. Still, it is established as a control measure for said emission. As a result, the computation difficulty is increased. In turn, the remuneration offered by the network to miners is traditionally reduced by half. In contrast, equipment with lower computing capacity could be more affected than industrial miners.
This factor arises when new mining equipment with a higher power level is launched or mining is considered a massive business model.
The creation of large amounts of Bitcoin addresses
It is considered a strategy used by some institutions or even individuals to manipulate the market, but for what purpose? It is not yet determined precisely.
During the last halving, it was evident that a company created a large number of bitcoin addresses through which transactions were executed not only for significant amounts but also with excessive commission payments; this generated some anxiety in the market and caused network congestion.
These false perceptions of a digital marketplace in constant movement tend to confuse market participants, which directly influences the price because it is not known exactly what will happen with it.
The feeling of a change in trend that generates stability in the market
When we talk about strength, we could be facing a misused term as a result of the fact that the financial and economic needs are in constant movement, where supply and demand play freely and are the ones that determine the state of a particular asset in this case, digital.
The digital financial market is constantly changing, so discussing stability should be a different concept.
Bitcoin has shown in its history how predictable it can be if there are no external factors that modify it and the cycles or phases that constitute it are known. Therefore, it has been concluded that there is a certain period in which they usually change.
Users who, over time, have acquired the skill to identify threats and abrupt changes that occur on the network are identified by users and have the maturity to reject them.
It is difficult to define the sale of 75% of Tesla’s Bitcoin as a factor that affected the valuation of Bitcoin at the time because the intentions always exist behind Elon Musk’s statements are often questioned.
Although the company’s quarterly report was presented, the details of the reason for the sale of 75% of the crypto assets held by the renowned electric vehicle company are unknown.
Although about the acquisition price and the sale price, a loss is perceived, the idea is blurred with the profits obtained by the first lot of Bitcoin sold during the year 2021.
The massive selling factor of Bitcoin is to be evaluated since, at the time, it achieved the correct response of the market, lowering the price; it is then that Elon Musk is considered not to destabilize the digital financial market with outdated news.