The lone bullish cryptocurrency in the top 50 by market capitalization is Filecoin (FIL). The cryptocurrency market is now bearish, with a total market capitalization of $1.65 trillion as of the writing of this piece.
The FIL, which is presently ranked #22 in terms of market capitalization, hit an intraday high of $102.10, a gain of more than 37%. Despite a significant reversal later in profit-taking emotions, the coin remains the only one with positive gains in the last 24 hours, up 13.50 percent.
However, the biggest two cryptocurrencies, Bitcoin (BTC) and Ether (ETH) are down more than 6% and 7%, respectively.
Elon Musk’s bizarre Tweet about a breakup joke with the hashtag #bitcoin and a broken heart emoji triggered a sell-off in the cryptocurrency market.
The Origins of Elon Musk’s Power
Elon Musk revealed in February that Tesla had added $1.5 billion in BTC tokens to its balance sheet. Following this, Elon Musk expressed his concerns about Bitcoin’s carbon footprint to the public in May, announcing that his electric car manufacturing company would no longer take Bitcoin as payment due to environmental issues. This, among other things, caused the most popular cryptocurrency to plummet from its all-time high to as low as $30,000.
Following this decision, rumors began to circulate that his firm was planning to sell its Bitcoin assets, further instilling fear and skepticism in the market. Musk, on the other hand, has denied reports that Tesla may sell its Bitcoin. Musk’s mysterious statement on Thursday night, however, fueled concerns that Tesla may unload its whole Bitcoin investment, or may have already done so.
Within hours of the tweet, bitcoin had dropped from around $39,500 to as low as $36,250. As a result of Bitcoin’s market domination and positive correlations, the altcoin market followed suit. In the same way, the second-largest cryptocurrency Ether, Binance (BNB), Cardano (ADA), and Dogecoin (DOGE) all plummeted.
Why is Filecoin on the Upswing?
So far, there has been no news about Filecoin, and the project’s team’s most recent major statement was on May 27, when it disclosed the “HyperDrive Network Upgrade,” which offers to increase the storage onboarding rate by 10-25 times the present rate.
The Relative Strength Index (RSI), a technical indicator that measures an asset’s price velocity, is pushing Filecoin’s bullish trend slightly towards the oversold territory. If the RSI readings are below 30, traders will often increase their exposure to assets that look to be undervalued. The RSI for FIL was 35.96.
The bullish trend in Filecoin is due to investors’ attraction to its perceived undervaluation in comparison to other major digital assets. Traders seeking a short-term hedge against the current market downturn caused by Elon Musk were able to take advantage of this.
On FIL, there are significant volume spikes, indicating fresh interest in the coin. FIL is presently trading at $86.23, up 14.88 percent from its last close.