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Elon Musk caused more calamity in the bitcoin price action Thursday night and Friday, leading at least one crypto hedge fund manager to describe the Tesla Inc. CEO and prolific tweeter as too influential on the market. bitcoin price.
Musk is definitely too influential on Bitcoin prices, Kevin Kang, co-founder and director of BKCoinCapital, told MarketWatch in email comments, while attending a bitcoin conference in Miami.
Kang’s remarks come after Musk posted a cryptic tweet Thursday night that many players in the digital asset world interpreted as billionaires’ break with bitcoin. The tweet included the bitcoin logo and a heartbroken emoji.
At last check, bitcoin BTCUSD prices, -2.05% were down more than 4%, changing hands to $ 36,960.93 on CoinDesk, with the drop blamed on Musks’ latest missive.
The price of DOGEUSD dogecoin, -3.05%, for which Musk was one of his biggest champions, fell 2.5%, changing hands to 38.5 cents.
Musk’s social media posts have had a disproportionate influence on dogecoin and bitcoin prices and he is at least partly blamed for the current collapse of bitcoin and the larger crypto complex. A Wall Street Journal article last month described him as the biggest bitcoin influencer.
Last month, Musk tweeted that Tesla would no longer accept bitcoin as a form of payment for its vehicles, citing the large carbon footprint of digital bitcoin mining. The tweet still resonates in crypto circles, rekindling a debate over the sustainability of bitcoin mining.
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In February, Tesla TSLA, +1.01% revealed that it had acquired some $ 1.5 billion in bitcoin in a file filed with the Securities and Exchange Commission.
Certainly, bitcoin is influenced by geopolitical events and tweets from other industry figures. However, Musk has become a frequent and powerful voice in the crypto arena, with his prominence perhaps amplified after he invited an episode of Saturday Night Live early last month that was widely seen as advancing crypto to the masses. . That’s even if Musk suggested at one point that crypto like dogecoin, bitcoin, and Ether ETHUSD, -1.92% on the Ethereums blockchain could be a stir, in a segment, much to the chagrin of some crypto bulls.
Kang said that ultimately Musk’s power over crypto is no different from the influence some traditional investors may have in more mainstream markets.
However, it’s no different from what we see in traditional assets when big hedge fund managers disclose their positions and those names change, Kang said.
I believe the more he tweets, the more immune the market will be going forward, but for now he’s definitely one of the big influencers in the Bitcoin market.
Granted, bitcoin is still up sharply so far in 2021, up 27%, and dogecoin is up almost 8,000% since the start of the year.
In comparison, traditional assets have seen more mundane gains. GC00 Gold Futures, + 0.23% are down less than 0.1% so far in the year; the Dow Jones Industrial Average DJIA, -0.36% is up more than 13%, the S&P 500 SPX index, -0.08% has gained nearly 13% and the Nasdaq Composite Index COMP, +0.49 % has climbed more than 7% on the year to date.
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