Tweets from Elon Musk send Bitcoin into a death spiral
Tell me again why this isn’t market manipulation, SEC?
It’s really interesting to see how short tweets from thought leaders in the crypto space can upend the market, like when Tesla CEO Elon Musk seemingly sent Bitcoin plummeting to 35-percent of its record high. The price rebounded slightly when the billionaire clarified that Tesla had no plans to sell its stake in Bitcoin.
To really understand just how fickle the market is, just one word, “Indeed” as a reply was enough to sink the price even lower, which had been sliding since last week after another Musk tweet that said Tesla won’t be accepting Bitcoin as a payment method. That earlier tweet also talked about Bitcoin’s “insane” energy use.
That forced the Tesla CEO to somewhat retract the earlier implied meaning, saying that Tesla has not sold off any of its Bitcoin holdings.
Will the company sell off them in the future? Who knows, but this exchange does show the issues around speculative assets that aren’t controlled by any central monetary entity. Being able to destroy equity with simple statements being taken as fact is why we have rules and regulations in the financial market in the first place.
Bitcoin is still down around 10 percent from its all-time high, but could quite as easily climb over that peak as it could devalue.
- Elon Musk thinks crypto is cool and that Dogecoin could be the future, but don’t be stupid about it
- Venmo will now let you buy and sell crypto like Bitcoin
- PayPal will now let you buy anything with cryptocurrencies like Bitcoin
- Coinbase users can now buy crypto with their PayPal account