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Did a tweet from Elon Musk cause the Bitcoin crash? We know this

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A few weeks ago the tycoon Elon Musk invested $ 1.5 billion in Bitcoin through your company Tesla. The transaction has the Market value over a trillion dollars and the cryptocurrency reached a price higher than $ 58,000. Despite the profits the purchase has brought him, the SpaceX CEO indicated that Bitcoin may be overvalued.

Did a tweet from Elon Musk cause the Bitcoin crash?  We know this
Did a tweet from Elon Musk cause the Bitcoin crash? We know this

From Saturday February 21st Bitcoin (BTC) began to show peaks pointing upwards. Investment of Tesla, added to those of Mastercard and BNY Melloncaused its market value to exceed $ 1 trillion for the first time that day.

On Sunday evening the 22nd, the cryptocurrency over $ 58,000 per unit. That’s almost double the $ 29,000 it cost on January 27, its lowest price this year.

In the first hours of that Monday, February 22nd, the Bitcoin collapsed under the $ 53,000which represents a Decrease between 8 and 10%.

The ether, the second largest digital currency by market capitalization, hit a record of more than on Saturday $ 2,000 per unit. That Monday, however, it also fell to around $ 1,700. Still, you can see significant growth as Ethereum started the year at just $ 730.

Elon Musk joins the Bitcoin fever

Earlier this month Tesla announced an investment of Bitcoin worth $ 1.5 billion. According to experts, Musk acquired 43,000 bitcoins in various operations in January. The average price last month was nearly $ 35,000. In addition, the company agreed to accept cryptocurrency as a means of payment for its electric cars.

With this bet, Tesla achieved a profit close to Billion dollarssays Dan Ives, a specialist at Wedbush Securities. “To put this in perspective, Tesla is well on its way to getting more out of its Bitcoin investments than it does from selling its electric vehicles throughout 2020.”Ives wrote a note this Saturday.

What has Elon Musk got to do with the Bitcoin crash?

Amid the ups and downs of Bitcoin, last Friday a user reprimanded musk for his stance on cryptocurrency. The economist and market strategist Peter ship, remembered a comment the Tesla CEO compared to BTC last December.

“According to Elon Musk, Bitcoin is almost as much of a joke as fiat money.” Musk views both bitcoin and fiat money as bullshit. I agree, I just think that Bitcoin, a digital fiat currency, is even more nonsense than the paper fiat currency issued by central banks. Gold isn’t silly. It’s real money and better than both! “The skeptic of digital money tweeted.

It is worth remembering that the Fiat money or inorganic money It’s one that isn’t based on the value of precious metals. Instead, it is backed by the general belief that it has value, i.e. the trust of a society. For example he dollar, the Pound Sterling, the Euro and the And in They are fiat money.

Hours later, the 49 year old Mughal He answered bluntly:

“An email saying you have gold is not the same as gold. You could also have cryptocurrencies. Money is just information that helps us avoid the inconvenience of bartering. Like all data, this data is subject to latency and errors. The system will evolve into something that minimizes both. “Musk explained.

Next, the founder of SpaceX posted the tweet everyone associates with the fall of Bitcoin: “That said, BTC and ETH (Bitcoin and Ethereum) seem high.”

Lots They blame Musk’s tweet for Bitcoin’s devaluationbecause the temporal proximity between the two events could convey the feeling of cause and effect. However, Musk’s statement came two days before the cryptocurrency hit its all-time high. In other words, even after the employer may have indicated it BTC is overratedthe price continued to rise.

On the other hand, the collapse of Bitcoin was given Monday morning to this day, inconsistent with the immediate impact of tweets out Elon Musk when it comes to electronic currencies. Suffice it to remember the times when the value of the Dogecoin increased by mentioning it on your social network. Hence, it would be very risky to say that the businessman caused the decline in the cryptocurrency, although it cannot be completely ruled out either.

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