Bitcoin’s value astonishingly fell after Tesla CEO Elon Musk tweeted saying the price ‘seems high’.
Earlier this month, the price-graph of this largest cryptocurrency got super-boosted after the richest man in the world supported it through investment. This enhancement powered bitcoin to break several all-time records in a matter of weeks.
But the price sharply turned downwards by 9% as an instant impact of Musk’s tweet after plunging by 17% earlier Monday.
The price of bitcoin, the world’s most popular cryptocurrency, crossed a major milestone Friday after the market value reached more than $1 trillion, leaving some major backers surprised. Ethereum, the second-largest cryptocurrency, also hit record highs.
“Money is just data that allows us to avoid the inconvenience of barter,” tweeted Musk. “That data, like all data, is subject to latency & error. The system will evolve to that which minimizes both.”
In the following post, Musk stated, “that said, BTC & ETH do seem high lol,” in a response to a user who said gold was better than both bitcoin and cash.
It’s widely considered that unpredictable weekend swings are pushed by individuals trading the cryptocurrency at home. So it’s also quite reasonable that prices declined on Monday as institutional crypto traders, who follow normal business hours, reacted to Musk’s Saturday tweet.
Bitcoin was selling at under $54,000 per coin Friday as it hit the new level, and increased above $55,000 later in the session, according to Coin Metrics. The price of bitcoin has rocketed around 350% during the past six months.
The second-largest cryptocurrency, Ethereum also cracked a record $2,040.62 for a weekly surge of roughly 12%. It was selling at $1,996 on Saturday.
“Elon and his fleet have incredible power over market prices,” said Mati Greenspan, founder of Quantum Economics, comparing Musk’s authority over the digital asset’s price moves to Warren Buffett.
“Elon has tons of money and he’s very sophisticated so I don’t worry that his Bitcoin will sort of randomly go up or down,” said Bill Gates, co-founder of Microsoft inc. in an interview with Bloomberg Television’s Emily Chang. “I do think people get bought into these manias who may not have as much money to spare, so I’m not bullish on Bitcoin, and my general thought would be that if you have less money than Elon you should probably watch out.”
According to Neil Wilson, the Chief Analyst at Markets.com, “It should go without saying that new investors to Bitcoin should be prepared for major volatility and for prices to drop suddenly and as sharply as they have risen.”