Bitcoin and other cryptocurrencies retreat due to Tesla, Cook and Apple

The rises in the cryptocurrency market on November 9th, when Bitcoin, Ethereum and other altcoins staged a spectacular rally and set new records, have given way to a rapid retreat that continues on Wednesday. Bitcoin's new all-time highs have been short-lived, as market sentiment becomes extremely sensitive to any news that could shake its price.

After reaching the milestone of $68,500 and already starting to dream of the coveted $70,000, the most traded of the digital currencies has given ground, approximately 2.5%, weighed down by the 12% drops in Tesla shares on Tuesday. The rest of the market behaves accordingly and leaves similar setbacks, while the total capitalization, which reached over $3 trillion, settles at $2.85 trillion.

An analysis of Tuesday's events expose that Bitcoin accelerated rallies after a Twitter poll of Tesla CEO Elon Musk came out in favor of selling his stake in the automaker. However, it was that same poll that weighed down Tesla shares, which, in turn, triggered the correction in the cryptocurrency market.

On the other hand, Apple CEO Tim Cook's statements that the company does not fully invest in cryptocurrencies, nor accept payments with them, have also had a negative impact on the share price. "I don't think people who invest in us want to have exposure to that asset," states Cook, acknowledging however, that he owns cryptoassets personally.

Other developments have played a role in the recent performance of cryptocurrencies. "The recent rise is said to have been due to younger investors using Bitcoin over gold as a hedge on inflation," they note from Spreadex.

Additionally, Mastercard launched cryptocurrency-linked payment cards in Asia, which after the recent news of the approval of a Bitcoin US ETF , " continues to further the narrative that cryptocurrencies are becoming more widely accepted which in turn furthers mass adoption," XTB experts indicate.

Although Bitcoin's price has pulled back slightly, "it still remains unclear if it will be able to extend the upward move as it could be increasingly susceptible to news and the general sentiment," these experts add. "Either way, as we have seen in the past, any significant move by the main cryptocurrency could lead to a domino effect across the market as traders and investors attempt to capitalize," they note.

"The medium- and long-term trend could not be more bullish," comments José María Rodríguez, analyst at Bolsamanía. "In fact, this has never been threatened in the slightest. So yes, the $100,000 we have been talking about since the beginning of the year is getting closer and closer. And $100,000 is not a real resistance because it doesn't really have one," he continues. "However, sometimes it is true that certain round, psychological numbers can act as momentary resistance," he concludes.