The prices of Bitcoin, Ethereum, joke token Dogecoin, and other cryptocurrencies have plunged more than 40 percent in past weeks since Tesla CEO Elon Musk said the company would not accept Bitcoin as payment anymore, and investors now are pleading with the billionaire to stop tweeting about the cryptos. While Elon Musk is not the only cause for the crypto carnage, he certainly is not helping.
Earlier in May, Elon Musk jokingly called Dogecoin a ‘hustle’ during his appearance on the late-night comedy show ‘Saturday Night Live.’ That, along with a series of events, including China’s crackdown on crypto transactions and mining, crashed the prices of some digital tokens further.
Managing Director of a cryptocurrency investing firm Magnetic, William Quigley, pleaded in a recent interview on CNN Business that not to pay attention to Musk’s remarks about anything in cryptos at least over the longer term.
Several investors point to Tesla Chief’s tweet as a tipping point in BTC’s biggest collapse of the year, which was topping even as late as mid-April at close to 65000 dollars.
Quigley said that Tesla, until very recently, was going to accept Bitcoin crypto as payment. That alone told him he did not understand how to think about Bitcoin.
Bitcoin fans are tired of Tesla Chief Executive’s exerting so much impact over the near-term price movements of seemingly all cryptos.
Chief Executive and founder of a crypto lending platform that offers digital tokens as rewards to customers, Celsius, Alex Mashinsky, said that people who followed Elon Musk blindly had lost a lot of money. They might have gotten burned and never come back.
Analysts displeased by that all virtual currencies rising and falling with Bitcoin and Dogecoin
Mashinsky added that the crypto community needs to be more responsible for explaining these assets and the risk. Pundits kept saying they’d never see a down market for BTC again because of institutional interest, PayPal and Square, etc. When people hear that, they have to worry.
Analysts and investors are particularly displeased by that all virtual currencies have been rising and falling with joke token Dogecoin and Bitcoin, in part due to Elon Musk making flip-flopping comments about them. Some cryptocurrency investors are also angry, to put it mildly, that a statement from Tesla’s Musk can change prices so wildly.
An angel investor and cryptocurrency consultant, Eloisa Marchesoni, says Musk is very calculated. People are angry.
You’re the most hated person in the world right now. All of my friends, myself included, went from die-hard Elon/Tesla/SpaceX/Neuralink fans to hating you from deep within our souls. How you accomplished that in such a short amount of time is one for the history books.
— Timothy S. Kim (@timothy_skim) May 19, 2021
Tesla, an American electric vehicle company, didn’t respond to requests for the statement about Musk’s thoughts on Bitcoin and other digital currencies. But Musk has not been silent on Twitter, and he seems bullish for the time being.
In one tweet early Monday morning, Musk shared a parody of the famous movie poster of ‘Jaws.’
— DogeGuy (@DogeGuy14) May 24, 2021
Musk’s Continuous Tweeting about Crypto confusing Investors
On Saturday, Musk also responded to a Twitter follower who asked him what you think about the peeps who are annoyed at you because of crypto? Musk stated that the actual fight is between Fiat and cryptocurrency.
The true battle is between fiat & crypto. On balance, I support the latter.
— Elon Musk (@elonmusk) May 22, 2021
Elon Musk, CEO of Tesla Motors, is not the only reason for the sell-off. Also contributing to the slide are fears of stricter regulations in China, where several Bitcoin mines operate, and the potential for more taxes on cryptocurrency in America.
But Musk’s continuous chatter about virtual currency might be confusing some investors.
They might not realize there are different use cases for BTC, which numerous investors treat as sort of an inflation hedge as opposed to Ethereum, the second-largest digital currency, whose blockchain is used for many non-fungible token transactions that are becoming progressively popular in the art and collectibles world.