The CEO of Tesla is storming the cryptocurrency world because his tweets are nothing but proving to be catalysts in this industry. The stock price of Cryptocurrency jumped up to $39,000 when Elon Musk decided to resume its partnership with Tesla.
His relationship with Bitcoin is complicated. Sometimes he loves them so much that he endorses them. Sometimes he hates them so much that he even claims them bad for our environment on Twitter.
Elon Musk Bitcoin- A Complex Relationship
In the year 2014, Elon Muck considered bitcoins to be good products. Since then, there was a rumor lurking around that he might be the actual owner of Cryptocurrency. In his response, the Tesla CEO said it was not valid. Instead, it was a friend who introduced him to this investment concept, and he was simply amazed by it.
In the year 2019, Elon Musk further strengthened his relationship with bitcoins. To invest in something hedge against inflation, this entrepreneur decided to invest $1.5 billion in cryptocurrency. That indeed intensified the controversy associated with Elon Musk Bitcoin.
The relationship became so intense that Musk also tweeted that Tesla would receive bitcoin payments for Tesla cars. It increased a new wave of cheer and energy in the investors of the crypto community. As a result, many investors moved forward to partner with Tesla.
However, soon after that, Elon Musk changed his mind about bitcoins. He sold 10% of bitcoin holdings, and that caused a panic wave among the crypto investors. After that, he tweeted again that Tesla won’t be accepting any more payments in bitcoins. And, this tweet crashed the world of cryptocurrency overnight. From $58,000 stock value, it fell straight to $30,000.
Is Elon Musk Bitcoin Controversy Solely Responsible For The Volatile Condition In The Crypto Community?
Well, not exclusively, but the Elon Musk Bitcoin controversy has active participation in causing such volatility in the cryptocurrency world. It is evident that with some finger tweets, Musk can change the trajectory of a booming industry. However, a deeper analysis suggests that there might be other reasons behind this market’s volatile condition.
A historical price evaluation of bitcoin suggests that even before Elon tweeted anything about bitcoins, it had witnessed a steep fall. Around mid-February 2021, bitcoin saw a massive growth of $63,729, but in April 2021, its market value plummeted majorly.
At the same time, Elon Musk tweeted about the partnership in May 2021, so our Tesla CEO cannot be solely held responsible for this crypto crisis.
Bitcoins picked up their pace around 2020 when people started buying them in an excessive amount. It was the accumulation stage of bitcoins because many investors were interested in buying them. However, the Relative Strength Index (RSI) indicator showed that bitcoins were overbought, and that is when it entered the markdown stage.
It proves even if Elon Musk had not tweeted about the fluctuation of bitcoins, the cryptocurrency community would have fallen. But, it would have just been a matter of time before the big shock came. So, it was needed for the crypto community people to recover from their mistakes and start afresh.
Will Elon Musk’s Decision Of Resuming Partnership With Bitcoins Improve The Status Of The Cryptocurrency World?
Indeed it will. We have already noticed that Elon Musk’s relationship with bitcoins is almost like a lover’s quarrel. He loves them, he hates them, he invests in them, then he rejects them. So, when he decided to resume Tesla’s partnership with bitcoins again, he increased its market value by 300% than last year.
Elon Musk’s concerns about the impact of bitcoins on the environment did play a massive role in the market fall. However, a day after he decides to resume the partnership, the bitcoin stock price increased by 10%. Not only that, but even the cost of dogecoins also increased after that tweet.
So, it seems true after all that the Elon Musk Bitcoin affair is somehow controlling the market condition of cryptocurrency.
However, the crypto community members should not be too excited about this price hike. It is not that one person’s tweet caused this market to hit rock bottom, but there are other factors too. So, they must focus on changing those factors to avoid the continuous fluctuation of this market.
Elon Musk or Bitcoins-Whom Does The Public Trust?
Very recently, Elon Musk again tweeted a silly joke about bitcoin maxis and lightbulb, which proved added flame to the fuel of Elon Musk Bitcoin controversy. In addition, his previous efforts to push this industry to be more energy-efficient seems to drop down with this tweet.
Michael Saylor, the CEO of MicroStrategy Company, took the Tesla CEO down because it hit him personally. Peter McCormack is the host of the most famous cryptocurrency podcast across the globe. He also took this joke personally and decided to take a dig at the entrepreneur itself.
Mr. McCormack even posted the link to Musk’s tweet when El Salvador announced publicly that the country would hold bitcoin as a medium for legal tender declaring its credibility.
However, many people were there who supported Musk’s opinion too. In addition, many users commented quirky things on Musk’s tweet that seemed to act in favor of the Tesla CEO. But, many users were commenting on such items that proved how much they were enjoying Elon Musk’s comeback tweets on bitcoins.
So, it was a somewhat mixed reaction from the public about supporting either Elon Musk or the cryptocurrency world. It indeed added fuel to the Elon Musk Bitcoin controversy because we are all talking about them again, aren’t we?
We genuinely want the cryptocurrency community to recover from its downward fall. The Elon Musk Bitcoin affair comments are responsible for the market’s sudden fall, but not solely. It is pretty unwise to blame the fall of such a massive market on one person’s comments.
It simply denotes how fluctuating and unstable the cryptocurrency world is. So, they better buckle up before another dig is taken at them.