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.
Elon Musk, Tesla; Source: Shutterstock
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%.
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.”
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.
