Elon Musk is Back Brokenhearted … And Bitcoin Takes Another Hit
In the early hours of Friday morning the Bitcoin provocateur was back stirring the digital pot with another tweet, this time depicting a broken heart.
The cryptic tweet hinted at a potential split with Bitcoin which is currently down 42% from its all-time high of $65K in mid-May.
— Elon Musk (@elonmusk) June 4, 2021
Musk had already ignited the selloff with his flip-flop on the digital asset last month citing environmental concerns due to its power consumption.
Tron Network founder Justin Sun was quick to jump into the scene stating:
“I will buy all the Bitcoin that Elon Musk sells”
The move was even noted by mainstream media with Bloomberg headlining “Bitcoin Dips After Musk Tweets Broken-Heart Emoji for Token”.
Further down the thread he tweeted “Make up sex is the best tho,” suggesting that this is all just a big game to the billionaire.
Bitcoin Drops 5%
The world’s leading digital asset fell 5%, or $2,000, in a couple of hours to touch $37,500 before a slight rebound during the morning’s Asian trading session.
At the time of press, BTC was trading at $37,750, a percent or so lower than it was at the same time yesterday. Over the past 7 days, Bitcoin prices have dropped 2.5% as it remains within a range-bound channel.
Analysts have warned about an impending death cross on the longer time framed charts which is an ominous indicator of continuation of the downtrend and more pain to come.
As reported by CryptoPotato yesterday, the consolidation could be quiet before the storm and a breakout always follows such periods of sideways trading.
Noobs … Get Over It!
The effect that Elon Musk’s tweets have on Bitcoin markets is evidence that inexperienced and emotional traders are still dominant enough to cause this volatility by panic selling.
Institutional and professional investors that are looking at the bigger picture would not be as easily fazed by such trivialities.
There is also the narrative that Musk is purposely trying to manipulate the markets for the benefit of Tesla which may be able to mine BTC using solar power in the future.