USD down as investors betting on an extended dovish stance; Bitcoin tumbled below $43,000 after Elon Musk expressed possibilities that Tesla might have sold the cryptocurrency

USD was down on Tuesday morning in Asia, hovering around its six-year low against CAD and multi-month low against EUR. The move was largely attributable to investors’ belief that interest rates might stay for a longer time. The market holds the same expectation for the Fed meeting this week.

JPY fell against GBP but slightly rose against USD upon the release of Q1 GDP. According to the official data, Japanese economy contracted 5.1% on a YoY basis and 1.3% on a QoQ basis. The expectation was at -1.2%, so the data did not come out as a full surprise.

Bitcoin tumbled heavily after Elon Musk replied “indeed” to a tweet which speculated that Tesla had sold its holdings on the cryptocurrency. Although Musk later tweeted that Tesla did not sell any of the Bitcoins, market reacted ahead of him. This has shown his great power to shift the market. Bitcoin reached its lowest point at $42,102.35 before rebounding to $45,408.43 at press time.