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 2021
An 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

Upcoming Events

MON - WED, MARCH 18 - 20, 2024

Digital Asset Summit (DAS) is returning March 2024. What you can expect: And more! Don’t miss out on the opportunity to be in the room when the future of crypto is decided. Join us and help shape the future of our […]

recent research

Research report - cover graphics-2.jpg

Research

Base has doubled-down on its commitment to the Superchain vision, has shown early signs of success with nearly $400M in TVL, and has become home to novel dapps such as friend.tech which has seen significant traction.

article-image

The court found that the plaintiffs had “plausibly alleged” that Compound Labs and its associated entities solicited the public to purchase COMP tokens

article-image

The investment is part of a larger agreement that includes the supply of 27,000 Bitmain bitcoin miners

article-image

The former FTX leader wanted to call seven witnesses, and the judge sided with government in precluding all of them

article-image

Aztec co-founders note that a developer testnet will likely be launched next year

article-image

Binance spent $840k in gas to consolidate accounts in what some labeled an inefficient process

article-image

The FCA expressed concerned that ‘unregistered, overseas’ crypto firms with UK customers haven’t responded to the regulator