For the second week, the crypto market is dominated by a tweet from billionaire Elon Musk.
The head of Tesla Inc. returned Bitcoin above $ 45,000 Monday after clarifying that the company was not selling any digital token holdings. Why electric car pioneers are launching crypto missiles every day on Twitter
“He had to wake up to the fact that with his followers, even a single tweet could move the market,” said Antoni Trenchev, managing partner and co-founder of Nexo in London, the crypto lender.
The drama began on Sunday after Musk sent out a tweet that raised questions about whether Tesla might have already sold its stake, user @CryptoWhale speculating that Tesla had already sold its holdings, saying “with the number. The hate @elonmusk is getting, I̵7;m not going to blame him, ”Musk responded to that tweet, posting a single word,” Absolutely. “
It was enough to shake up trader’s confidence, and Bitcoin dropped 10% over the weekend, hitting a three-month low. The price was flat on Monday, trading up 3 percent at $ 45,436 as of 11:12 a.m. in London.
Elon Musk opens up old wounds in the Bitcoin universe
Musk’s involvement in crypto has been a key driver of the bull market this year and the unveiling of Tesla’s $ 1.5 billion stake has justified the virtual currency. In April, Tesla’s earnings report showed that the company has sold 10 percent of Bitcoin.Musk said on Twitter that Tesla was trying to “prove Bitcoin’s liquidity as an alternative to holding cash on the balance sheet.”
Tesla traders and analysts are wondering if there’s anything serious behind Musk’s online music.Over the past two days, Musk has tweeted no less than eight crypto-related tweets, often with emojis in response to the story. Jokes from his followers between other posts about SpaceX and China’s mission to Mars. In response to another thread criticizing his Bitcoin stance, Musk said: “ Such a nasty topic made me want to go see Doge. ”
Musk appears to be “accepting Twitter visitors over the weekend and making a chunky spin across the coin,” Chris Weston, head of research at Pepperstone Group Ltd., wrote in a note.
Last week, Musk surprised crypto investors by posting criticism of Bitcoin as an energy hog.He announced that Tesla would suspend car purchases using tokens, calling the latest consumption trend ” The investors questioned the timing of Musk’s statement, saying that Bitcoin mining was known to consume a lot of energy.
Bitcoin and Crypto Assets Sweep Both Main Street and Wall Street.
“Elon Musk’s actions had some degree of disgrace to both traditional and digital asset investors,” said Vladimir Vishnevskiy, co-founder of St. Gotthard Fund Management, which invests in crypto and conventional assets. His unusual appearance again “
For more articles like this, please visit us at bloomberg.com
Apply now to be the most trusted source of business news.
Copyright © 2021 Bloomberg LP