Home News After market-wide meltdown, Elon Musk voices tepid support for crypto

After market-wide meltdown, Elon Musk voices tepid support for crypto


Elon Musk said that a real battle is now going on between paper money and cryptocurrency. And he supports virtual assets in it. Earlier, subscribers asked Musk what form of money he prefers. Musk has made comments in support of the cryptocurrency before. In February, he wrote: “when fiat currencies have negative real returns, only a fool won’t look for anything else”. Musk’s statements have repeatedly caused cryptocurrency price spikes in the past.

This time, the words of the entrepreneur again affected the value of Bitcoin, albeit only slightly. According to Bloomberg, after Musk’s words, the Bitcoin rate on crypto-exchanges rose and traded at $ 38.7 thousand. Thus, Musk’s comments did not make an impression on the cryptocurrency market.

Musk’s manipulation

Musk has repeatedly supported cryptocurrencies and made statements that led to sharp jumps in their value on exchanges. He spoke positively about the Dogecoin altcoin, which led to its growth. Musk wrote a few days ago that he has not sold any of his Dogecoin assets and has no plans to do so.

In February, Tesla invested $ 1.5 billion in Bitcoin and announced the sale of its electric vehicles for this cryptocurrency. Immediately after that, Bitcoin updated its historical maximum price and reached $ 44 thousand. In April, the company valued its crypto assets at almost $ 2.5 billion.

Conversely, Musk’s negative statements about a sharp decline in prices. So, for example, on May 12, he wrote that Tesla will stop accepting Bitcoin as payment for its cars. The excessive energy consumption of the cryptocurrency was cited as the reason. Although he added that Tesla may reconsider the decision if the situation changes. On the same day, according to CNBC, the cryptocurrency market capitalization decreased by $ 365 billion. Dogecoin cryptocurrency also actively reacted to Musk’s statements. Earlier this month, while participating in the Saturday Night Live show, Musk already called Dogecoin a “scam”, which caused its rate to collapse by tens of percent.

It is already widely known that the head of an electric car corporation has an influence on the course of digital money. Such volatility in the behavior of the billionaire contributes to the preservation of the volatility of the cryptocurrency market, which began to decline after the manifestation of interest in such assets on the part of large banks and investment companies.

May decline in prices

The bearish dynamics of BTC reflected in the state of the market as a whole. Altcoins also suffer losses.

Earlier, experts said that the May recession was another date in the annals of the cryptocurrency market. It forced someone to leave the scene, someone may for the first time fully know what volatility can be in this asset class.

The direct reason for the latest fall was the ban on the storage, management, and emission of cryptocurrencies by financial and payment organizations in China. The Chinese Central Bank, introducing the ban, explicitly warned that cryptocurrencies “not supported by their real value”, but their quotes are easy to manipulate, and they called their recent growth the result of speculation.

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