Elon Musk “Certainly Too Influential On Bitcoin Prices” Says Crypto Hedge Fund Manager, But That Could Change
Elon Musk caused more calamity in the bitcoin price action Thursday night and Friday, leading at least one crypto hedge fund manager to describe the Tesla Inc. CEO and prolific tweeter as “too much. affect bitcoin prices “.
“Musk definitely has too much influence on Bitcoin prices,” Kevin Kang, co-founder and director of BKCoin Capital, told MarketWatch in email comments, as he attended a conference on the. bitcoin in Miami.
Kang’s remarks come after Musk posted a Thursday night cryptic tweet that many in the digital asset world interpreted as the billionaire’s break with bitcoin. The tweet included the bitcoin logo and a heartbroken emoji.
At the last check, the prices of bitcoin BTCUSD,
were down more than 4%, changing hands to $ 36,960.93 on CoinDesk, with the drop blamed on Musk’s latest missive.
The price of DOGEUSD dogecoin,
for which Musk was one of his biggest champions, fell 2.5%, changing hands to 38.5 cents.
Musk’s social media posts have had a disproportionate influence on dogecoin and bitcoin prices and he is at least partly blamed for the current collapse of bitcoin and the larger crypto complex. A Wall Street Journal article last month described him as the biggest bitcoin influencer.
Last month, Musk tweeted that Tesla would no longer accept bitcoin as a means of payment for its vehicles, citing the large carbon footprint of digital bitcoin mining. The tweet still resonates in crypto circles, rekindling a debate over the sustainability of bitcoin mining.
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In February, Tesla TSLA,
revealed he had acquired some $ 1.5 billion in bitcoin in a file with the Securities and Exchange Commission.
Certainly, bitcoin is influenced by geopolitical events and tweets from other industry figures. However, Musk has become a frequent and powerful voice in the crypto arena, with his prominence perhaps amplified after he invited an episode of “Saturday Night Live” early last month that was widely seen as advancing crypto. to the masses. This is even though Musk suggested at one point that crypto like dogecoin, bitcoin, and Ether ETHUSD,
on Ethereum’s blockchain could be a stir, in one segment, much to the chagrin of some crypto bulls.
Kang said that, ultimately, Musk’s power over crypto is reminiscent of the influence some traditional investors may have in more mainstream markets.
“However, it’s no different from what we see in traditional assets when big hedge fund managers disclose their positions and those names change,” Kang said.
“I think the more he tweets, the more immune the market will be going forward, but for now he’s definitely one of the big influencers in the Bitcoin market.”
Granted, bitcoin is still up sharply so far in 2021, up 27%, and dogecoin is up almost 8,000% since the start of the year.
In comparison, traditional assets have seen more mundane gains. GC00 gold futures contracts,
are down less than 0.1% so far in the year; the Dow Jones Industrial Average DJIA,
is up more than 13%, the S&P 500 SPX index,
gained nearly 13% and the Nasdaq Composite Index COMP,
has climbed more than 7% since the start of the year.