Tesla owner Elon Musk’s affair with cryptocurrency has reached a new level, or so it appears from his recent posts on Twitter.
The overall crypto market dwindled by about six on Friday, June 4, after a couple of puzzling tweets from the self-proclaimed ‘Dogefather’ hinted at a possible split with Bitcoin. The tweets have also given way to massive speculation as to whether Tesla still holds the largest digital token or not.
In one of his latest tweets, Mr Musk posted #Bitcoin with a broken heart emoji and a meme photo about the popular Linkin Park song, In the end.
In addition to this, he replied to his tweet with a meme, which represents a nosediving chart with the phrase, “I miss you”.
Is Tesla’s “Technoking” missing Bitcoin? If so, why?
BTC/USD's YTD Price Trajectory Against Moving Average Multiple. (Source: Refinitiv)
The token by market cap tumbled as much as 5.62 per cent and was trading at nearly US$ 36,528 apiece as of 4:00AM EST. The dip hit this week’s equilibrium in the crypto market after the May market crash.
The coin also shrunk below its moving average multiple.
Dogecoin tokens too plummeted more than 15 per cent as Musk’s tweet created fear, uncertainty, and doubt (FUD) among crypto investors.
Elon Musk, The Crypto Influencer
The business tycoon shocked the crypto world in May with Tesla’s decision to put a pause on accepting Bitcoin as a payment mode. Following this announcement, the token crashed by over 30 per cent to nearly US$ 30,000 apiece on May 19.
The Tesla CEO has caused a stir for Bitcoin and other crypto tokens, like Ether and Doge, quite a few times with his speculative tweeting spree. He has also expressed his concern about the environmental effect of the crypto-mining process, which consumes an extreme amount of electricity and generates immense heat.
Mr Musk’s tweets often cause a swing in crypto market prices that upset a fraction of investors and crypto purists who believe in decentralized finance. But the engineer-turned-entrepreneur seems to have tight grip as a crypto influencer, and the impact of his tweet on the market appears to be unavoidable as of now.
However, purists expect that more mainstream adoption will deter such influence on the cryptocurrency industry in the long run.
Bitcoin has declined almost 44 per cent compared with its lifetime high of US$ 64,829 apiece (recorded in mid-April). Some analysts have pegged its short-term resistance level at US$ 40,000 apiece and the first support level at 36,000 apiece.
Going forward, a clean crypto mining process could play the role of a deciding factor for the crypto’s market.
The above constitutes a preliminary view and any interest in stocks should be evaluated further from investment point of view.