So far this month, Bitcoin has gained 43.49%, posting gains for the fifth consecutive month.
In its biggest daily drop in a month, Bitcoin fell below the $50,000 level after Elon Musk commented that prices were too high. This dip is attributed to investors' unease and the decision of some market players to make profits.
The cryptocurrency had been rallying since Musk put #Bitcoin in his Twitter bio and since some major companies, including Tesla and MasterCard, decided to adopt the cryptocurrency. So far this month, Bitcoin has gained 43.49%, posting gains for the fifth consecutive month.
Concerns about the regulation of cryptocurrencies have been gaining traction lately. After making reference to the necessity of cryptocurrency regulation, Treasury Secretary Janet Yellen said that Bitcoin was extremely inefficient.
“I don’t think that Bitcoin…is widely used as a transaction mechanism,” Yellen said during an interview at CNBC. “To the extent it is used I fear it’s often for illicit finance. It’s an extremely inefficient way of conducting transactions, and the amount of energy that’s consumed in processing those transactions is staggering.”
She highlighted that is a highly speculative asset as well, adding that it can be extremely volatile and that she worries about potential losses that investors could suffer.
"It is a highly speculative asset and you know I think people should be aware it can be extremely volatile and I do worry about potential losses that investors can suffer,” Yellen added.
Bill Gates also commented on the cryptocurrency, warning Bitcoin buyers against Elon Musk's investment strategy and highlighting that Musk has a lot of money and wouldn't be affected by volatility the same way as smaller investors.
"If you have less money than Elon, you should probably watch out,” said Gates.
By 11:17 GMT, Bitcoin went down by 13.68%, falling to the $47,391.0 level.