The biggest factor affecting the price of bitcoin is Musk’s sharp drop of 40% in May

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QQ music technology news on May 24, when Elon Musk commented on cryptocurrency, investors tend to listen carefully. But the Tesla chief executive often publishes vague information, which has led to a roller coaster ride in the price of bitcoin since the beginning of this year.
When musk tagged his twitter profile with “bitcoin” in January, the price of the cryptocurrency soared nearly 20%. After Tesla disclosed in February that it had bought $1.5 billion worth of bitcoin, its price rose 16% in one day.
Then, musk tweeted earlier this month that Tesla would no longer accept bitcoin as a payment method for its car. Investors generally blame the tweet for triggering bitcoin’s biggest sell-off this year, causing the market value of bitcoin to shrink by hundreds of billions of dollars and erasing the gains since the end of January. After peaking at nearly $65000 in mid April, bitcoin prices have fallen by about 50%, including about 40% since musk tweeted in May.
When bitcoin prices rise, many investors are happy to see Musk’s tweets as harmless noise. Some investors, especially those new to the bitcoin market, even cheered for Musk’s support for bitcoin. However, now that the price has fallen, they seem very disappointed, and even many people are angry about it.
Portugal’s Heidi chakos, who has invested in bitcoin since 2014, said: “Musk knows he has a lot of influence and has shown how much he likes to play with bitcoin, but it hurts the interests of her followers.”
Chacos’s Twitter account, called “blockchain chicken”, has accumulated 42000 fans. Although it seems insignificant compared with Musk’s 55 million fans, it is enough to give her a huge influence in the field of social media. Chacos said that when she saw Musk’s latest tweet, she couldn’t help “rolling her eyes.”. Musk’s tweet triggered panic and speculation about whether Tesla was ready to sell bitcoin.
Musk has said Tesla will not sell any bitcoin. The use of the cryptocurrency in transactions will resume after the energy use issues related to bitcoin have been resolved. But chacos said: “for those who make investment decisions based on someone’s tweets, I just feel a little sad. These people just want to stay influential and use his platform. ” Chacos said it had no plans to sell its bitcoin.
Musk is not the only one to influence the cryptocurrency market through social media. In the past year, public figures from investment managers to CEOs and celebrities have expressed their different views on cryptocurrency on platforms such as twitter, reddit and clubhouse. Some of them, such as Star Investment Manager Cathie wood, have impressed their followers with their keen market insight. Others have adopted a more unconventional strategy. At the height of retail sales last year, the audience was shocked and delighted when Dave Portnoy, founder of barstool sports, broadcast live on the Internet the scene of himself buying stocks by pulling random letters out of his Scrabble bag.
The market influencers of the current generation are quite different from those of the past. In the 1960s, investors adored fund manager Cai Zhiyong very much. The mutual fund he built achieved amazing results, which made him a star in the investment field. There was also a craze for the work of Peter Lynch, whose fidelity Magellan Fund outperformed 99.5% of other funds in its last five years of operation. Of course, few people today don’t know about Warren Buffett.
But musk is different from them. Although he has expressed opinions on dogcoin and Gamestop stocks, he is an entrepreneur, not a professional investment manager. Musk is well-known for hosting “Saturday night live” earlier this month. He is no stranger to controversy. In 2018, a few days after settling fraud charges with the securities and Exchange Commission, he sent a tweet deriding the agency, calling it the “short seller enrichment Committee.”.
In the opening monologue of Saturday night live, musk defends his antics. “For those I’ve offended, I’ve reinvented the electric car, and I’m sending people to Mars in rocket ships,” he said. Do you think I’ll be calm and normal? ”
Peter Atwater, a part-time lecturer in economics at William and Mary College, said there was no doubt that musk was attractive to people. “I think musk really shows his rebellious side, especially when he uses twitter,” he said. If you look at cryptocurrency and electric cars, I think there are at least two features that appeal to young people, that is, they are full of fantasy about the future and rebellious enough. ”
Those who criticize musk say he is not a folk hero. They point out that as one of the richest people in the world, there is an inherent power gap between musk and those who may regard his tweets as some kind of investment gospel. “People like musk don’t care about your financial situation,” said lark Davis, a new Zealander who has invested in bitcoin since 2017. He’s having a good time, even if you’ve lost all your investment. ”

Davis attributed part of the decline in bitcoin prices over the past month to inexperienced investors, who were scared by Musk’s seemingly 180 degree turn in bitcoin’s attitude and the subsequent wave of selling, and sold bitcoin in their hands. Investors also pointed out that other factors have also accelerated the decline in bitcoin prices, including suggestions from many governments that financial institutions should not accept virtual currency payments, and the withdrawal of investors who benefited from this momentum earlier this year.
“It’s sad that people with great influence like musk have become too powerful opinion leaders in the cryptocurrency industry,” Davis said He added that new investors had better study cryptocurrencies themselves and restrain their expectations of quick and easy profits.
The volatility of bitcoin prices over the past month has also reminded other investors that they need to continue to be vigilant against bitcoin. Rick Lear, founder and managing partner of Lear investment management, believes that the trend of bitcoin is similar to the dramatic volatility experienced by game Posthouse, AMC and other stocks earlier this year after a social media driven trading frenzy.
For Davis and chacos, no matter what comments musk will make on the cryptocurrency, they are full of hope for the future. “I plan to keep it for decades to come,” chacos said´╝ł Tencent technology reviser / Jinlu)