Skip to main content

Bitcoin Stable as Double-Digit Percentage Rally Pauses

Bitcoin stabilizes as prices come off a recent double-digit percentage rally driven by tweeted comments from Tesla CEO Elon Musk.

Bitcoin was little changed on Tuesday as prices for the world’s biggest cryptocurrency pulled back from a recent double-digit percentage rally driven by renewed comments from Tesla  (TSLA)  CEO and techno-turned-token king Elon Musk.

Bitcoin was down 1.5% early Tuesday at $36,967, according to CoinDesk, following a 16% jump on Monday. Ethereum, the No. 2 cryptocurrency, was up 7.65% at $2,451.37.

Cryptocurrency prices tumbled last week following several conflicting tweets from Musk as well as talk about increased regulatory scrutiny in the U.S. and a call from China’s central bank to crack down on Bitcoin mining and trading.

Bitcoin on Sunday fell to near $32,200, a drop of more 31% over the past seven days. In April, it recorded an all-time high of $64,829. 

Shares of cryptocurrency exchange Coinbase  (COIN) , meanwhile, were up 1.42% at $228.50 in premarket trading. 

Goldman Sachs initiated coverage of the largest U.S. cryptocurrency exchange on Monday with a buy rating and a $306 price target.

Musk's ongoing dialogue on Twitter hasn't helped much. The billionaire triggered a selloff last week after criticizing Bitcoin's energy profile and suspending Bitcoin payments less than a month after saying his electric car company would accept them.

TheStreet's Jim Cramer said it's time for the Securities and Exchange Commission to consider cryptocurrency "an asset worth regulating."

In his Real Money column, Here's How We End the Crypto Madness, Cramer said, "... it's imperative that either (Treasury Secretary Janet) Yellen or (SEC Chairman Gary) Gensler say they are uncomfortable with all of the leverage they are seeing in the crypto markets," which in turn would help weed out speculative froth.

Cramer tweeted that he wished the "real crypto bulls would clean house and discredit the joke cryptos."

"The world divided between people who believe in crypto and people who don't, and I think that's wrong," Cramer said.