Elon Tweets, Bitcoin Price Dips, Again

While Musk’s influence on the price of bitcoin is not a surprise, it’s still shocking to realize how much difference one tweet by the Technoking can make.

article-image

Elon Musk, Tesla; Source: Shutterstock

share

key takeaways

  • “As more institutional investors come into the space, we expect Musk’s tweets to affect the market less and less, but we are far from that point at the moment,” said Kevin Kang, BKCoin Capital
  • Bitcoin’s current price is well below fundamental valuations

Bitcoin 2021, Miami — Attendees at Bitcoin 2021 in Miami got a rude awakening (if they slept at all) thanks to Elon Musk’s latest tweet of “#Bitcoin” and a broken heart, which subsequently sent the value of bitcoin down 6.3%.

Loading Tweet..

While Musk’s influence on the value of bitcoin is not a surprise, it’s still shocking to realize how much difference one tweet by the Technoking can make. And Bitcoin 2021 attendees and speakers aren’t having anything to do with it.

According to a report from Fox Business, Max Keiser began a fireside chat by saying, “F-ck Elon!” several times. 

Meanwhile, an electronic billboard truck is making the rounds outside the convention center telling Elon to “Stick to space.”

Stick to space Elon sign at Bitcoin 2021An electronic billboard truck making the rounds at Bitcoin 2021. Photo courtesy of Kevin Kang, BKCoin Capital

Price volatility is nothing new to hyperbitcoiners used to the ups and downs of the digital currency. However, the reaction of the value fluctuation to Musk’s tweets is a sign that bitcoin is still in a nascent stage with few institutional investors, according to Kevin Kang, founding principal at BKCoin Capital, who has written on the topic previously for Blockworks.

“The market movement post Musk’s tweets continues to show how nascent this asset class is. After all, Musk’s Tesla did purchase $1.5 billion worth of Bitcoin back in February for its treasuries and a lot of new retail investors tend to panic sell post Musk’s tweets,” he said. 

“As more institutional investors come into the space, we expect Musk’s tweets to affect the market less and less, but we are far from that point at the moment,” he said, adding, “Bitcoin’s current price is well below fundamental valuations. PlanB’s stock to flow model shows bitcoin being worth around $65,000 as well as NVT price valuation being at around $55,000.”

At the time of publication bitcoin was at $37,080.23, according to CoinGecko.

Read more of our coverage from Bitcoin 2021 here.

Tags

Decoding crypto and the markets. Daily, with Byron Gilliam.

Upcoming Events

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

recent research

Research Report Templates (2).png

Research

We’re bullish on the PUMP token. We believe Pump.fun's brand strength, existing integrations, product roadmap, and strategic levers justify PUMP's TGE valuation, and expect the token to re-rate meaningfully higher in the months ahead.

article-image

Big blockers wasted a bitcoin fortune trying to prove a point

article-image

Coinbase’s newest acquisition includes the CEO and Head of Research from Opyn

article-image

Crypto’s highest purpose might be to make markets better by making them bigger

article-image

The non-profit’s “Project Open” seeks to let stocks trade directly on Solana

article-image

The acquisition is Pump.fun’s first, and comes just days before its planned ICO

article-image

As Trump’s tariff war reignites, everyone is assuming the dollar will continue its path lower. But the journey might be bumpy