Crypto Markets See Modest Pullback on Profit-Taking; Elon Musk Calls Bitcoin “Brilliant”

The top 20 cryptocurrencies booked modest to sizable losses on Thursday, as investors took profits following an impressive run up in prices at the start of the week. While trade volumes have levelled off from the yearly highs set on Tuesday, they remain well above what’s considered normal in a bear market, leading some to speculate that the current rally still has room to mobilize.

Market Update

All major coins reported losses through the early part of the session on Thursday. Looking at CoinMarketCap, bitcoin’s aggregate price declined 0.5% to $3,961.10. It still hovered north of $4,000 on Bitfinex. More on that story: Bitcoin Runs into Minor Resistance After Setting Fresh Six-Month High.

Ethereum reported a loss of 1% to trade at $146.07. The so-called developer’s cryptocurrency still enjoys strong upside and higher than normal volumes ahead of next week’s highly anticipated Constantinople upgrade.

XRP declined 2.5% to $0.3224, a price point that should keep the sellers at bay. XRP blew past the 30-cent threshold earlier in the week, a level that had provided stern resistance in the past.

EOS dropped 1.8% to trade at $3.77. Even with the decline, EOS is by far the best performing major this week, having gained a whopping 36%.

After an impressive two-week stretch, Litecoin’s price fell back below $50 on Thursday. It was last valued at $49.41, having dropped 3.6%. Litecoin got the crypto recovery started almost two weeks ago. Click here to read more.

Further down the market-cap index, Binance Coin declined 5.8% to $10.34. Bitcoin SV, Monero, Dash and IOTA each fell by at least 2%.

The cryptocurrency market is currently valued at $133.9 billion, down from a high of $136.2 billion earlier in the week. Trade volumes were a healthy $28 billion, far higher than the average seen in the latter half of the bear market.

Elon Musk Praises Bitcoin

Tesla CEO and serial entrepreneur Elon Musk doesn’t hold any cryptocurrencies, but is a firm believer that digital assets are the wave of the future.

Musk, who appeared on the latest episode of ARK Invest’s podcast, said the following: “Paper money is going away and cryptocurrency is a far better way to transfer value than pieces of paper.”

Responding to whether crypto may be useful for Tesla, Musk said:

“I think the Bitcoin structure is quite brilliant. There seems like there is some merit to Ethereum as well, and obviously others. But I’m not sure if it’s a good use of Tesla resources to get involved in cryptos.”

While Elon Musk is just one of many to opine on bitcoin and its potential future, his comments represent an important attitudinal shift on the subject. This shift extends from Wall Street’s upper echelons all the way down to main street. As Hacked reported earlier, millennials and other younger cohorts appear keen on investing in cryptocurrency and are more likely to trust virtual exchanges instead of banks. According to a recent survey by eToro, 43% of millennials have more trust in crypto exchanges than the U.S. stock market.

Disclaimer: The author owns Bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

Author:
Chief Editor to Hacked.com and Contributor to CCN.com, Sam Bourgi has spent the past nine years focused on economics, markets and cryptocurrencies. His work has been featured in and cited by some of the world's leading newscasts, including Barron's, CBOE and Forbes. Avid crypto watchers and those with a libertarian persuasion can follow him on twitter at @hsbourgi