I think it’s safe to say that cryptocurrency is so volatile that it only takes some tweets from Elon Musk to make or break them. Bitcoin recently dropped in price after Musk implied in a tweet that Tesla may have sold or is planning to sell most of their bitcoin holdings. This simple implication caused the cryptocurrency to drop below $43,000 in price. Guess Elon Musk really is the techno king.
Initially, Musk said that the company had no plans of selling the bitcoins they already had and even planned to use them for transactions as soon as mining transitioned to sustainable energy. However, when Twitter user @CryptoWhale said that “Bitcoiners are going to slap themselves next quarter when they find out Tesla dumped the rest of their holdings. With the amount of hate @elonmusk is getting, I wouldn’t blame him…”.
Musk simply replied “Indeed” and this was enough to make the Bitcoiners go mad. You can view the tweet below.
It isn’t surprising that just this tweet alone caused bitcoin to drop in price. It probably made people think Tesla had sold their bitcoin holdings which spurred people to do the same as well. Musk has always been a supporter of bitcoin, However, he has since moved on to Dogecoin, inspired by the meme and even embracing it by naming a rocket after the meme. He has even suspended vehicle purchases using Bitcoin over environmental concerns which hurt the currency a lot.
The tweet was just a big misunderstanding though. Musk has now clarified that rumors that Tesla has sold their bitcoins are merely speculations and that isn’t the case. He said in a tweet that “To clarify speculation, Tesla has not sold any Bitcoin”. And as expected bitcoin saw an increase in its price this Monday morning. It seems Musk’s previous tweet was misunderstood. You can view the tweet below.
People have expressed concerns over Musk and the way he tweets. Musk’s tweets are mostly all over the place. One day he’s supporting something and the next day he’s supporting something else. Fred Wilson, an influential venture investor even spoke up about it saying that “He’s playing games. It is hard to take anyone who does that seriously. I’ve lost enormous respect for him over the last year because of it. Deep respect for what he does with his talents. Less for what he does with his tweets”.
Musk recently announced that SpaceX would only accept dogecoin to fund the launch of the DOGE-1 rocket to the moon. This coupled with his tweets about the cryptocurrency has boosted its price and increased trader acceptance of the meme coin.
Maybe Musk will tweet something that will stop scalpers from buying out all the graphics cards.