With his tweets, Elon Musk has been causing extreme Bitcoin fluctuations for months. After the crypto crash, the Tesla boss aroused a lot of resentment, although he stopped the downward trend.
Because the crypto market is deep, emotions are boiling among investors: Last week, Bitcoin temporarily dropped by around 25 percent to $ 30,066. The value of the most important digital currency has not been so low since the end of January – the record high of just under $ 65,000, which was only reached in mid-April, has moved a long way off. Other cryptocurrencies fare similarly. Investors blame Elon Musk and his outspoken tweets. You raise serious allegations against the Tesla boss.
In fact, the Bitcoin course has been reacting to Musk’s statements for months like a fickle admirer – sometimes exulting, currently rather sad to death: His announcement that Tesla has invested billions of dollars in Bitcoin has fueled the Bitcoin rally of the past few months. Tesla’s plan to accept digital currency as a means of payment in the future drove the rate up further.
Shortly before the Bitcoin crash: Tweets from Musk create uncertainty and cause the price to fall
Then, in mid-May, the withdrawal: Musk declared that Tesla would no longer accept Bitcoin due to the poor environmental balance of the crypto currency – the course reacted promptly. “Musk got the ball rolling. It will take a while for investors to recover from this shock.
To the chagrin of Bitcoin investors, China also interfered last week at the wrong time: On Tuesday last week, the Chinese central bank declared cryptocurrencies to be “bogus currencies”, warned investors against “speculation” and called on financial institutions not to accept cryptocurrencies as a means of payment still to use. Then the Bitcoin price (and with it the other crypto currencies) fell into the abyss.
Musk stops Bitcoin slump after China announcement with cryptic tweets
Since then, Bitcoin has ranged between 30,000 and 40,000 dollars and has fluctuated greatly – also because Musk repeatedly expresses himself cryptically. “Tesla has diamond hands”, in German: “Tesla has diamond hands,” he tweeted last week. “Diamond-Hands” describe in the language of stocks an investor who will hold onto his investment until the end. The opposite would be “paper hands”. With the two emojis, Musk is indicating that he does not want to sell his Bitcoin shares. The course appreciated that.
Elon Musk (@elonmusk) May 19, 2021
On Sunday the Bitcoin price was still around 32,600 dollars, on Monday evening it climbed to 39,500 dollars and this Wednesday it is scratching the 40,000 mark. The possible reason for the stopped downward trend: Musk spoke up once more on Twitter. The Tesla boss seems to be losing some of his environmental concerns about Bitcoin: “I spoke to North American Bitcoin miners (…) Potentially promising,” the Tesla CEO tweeted on Monday.
Slight Bitcoin upswing after Musk’s tweets – investors are still pissed off
Even if Musk has caused a slight upturn in the crypto market: Crypto experts and investors would prefer Musk not to comment at all. The unanimous opinion is that it has already caused too much uncertainty in an already volatile market. “Investors who blindly followed Musk have lost a lot of money. They are scared and may never come back on the market, ”said Alex Mashinsky, head of the crypto-savings bank Celsius, to CNN. The crypto investor Eloisa Marchesoni adds: “People are angry. Musk is very calculating. “