Connect with us

Hi, what are you looking for?

Hasepoyo

Tech

Speculation Over Elon Musk Tweet Prompts Bitcoin Selloff


Bitcoin’s dollar value fell more than 7% after a tweet from

Tesla Inc.

TSLA -4.75%

Chief Executive

Elon Musk

prompted speculation that the electric-car maker had sold, or would sell, its holdings of the cryptocurrency.

While Mr. Musk later tweeted that Tesla hadn’t sold any bitcoin, the selloff demonstrated his power to shift cryptocurrency markets. Last week, he said Tesla had suspended accepting bitcoin as payment for its vehicles, citing concerns over its carbon footprint. Since then, the market value of bitcoin has fallen to about $850 billion from more than $1 trillion.

Mr. Musk’s recent posts on

Twitter

have shown that his sentiments are having a significant impact on the market, said Chris Bendiksen, head of research at London-based asset management firm CoinShares.

“It’s a little too much for my liking,” he said.

The attention on bitcoin from Elon Musk likely helped usher new individual investors to buy it.



Photo:

Liesa Johannssen-Koppitz/Bloomberg News

The Tesla chief has long been a prolific tweeter regarding cryptocurrencies, sharing memes and posts about the joke cryptocurrency dogecoin. Earlier this year, Tesla said it added $1.5 billion worth of bitcoin to its corporate treasury. The company sold $272 million worth of bitcoin in the first quarter, helping it report record earnings.

The attention on bitcoin from Mr. Musk likely helped usher new individual investors to buy it, investors and analysts say. Those traders might be more likely to sell based on Mr. Musk’s tweets, increasing volatility.

The price of bitcoin is skyrocketing, driving a rally of momentum trading that’s pushed its value higher than it’s ever been before. WSJ explains how bitcoin trading works, and why the volatile digital currency is reaching all-time highs. Illustration: Jacob Reynolds/WSJ (Video from 12/21/20)

Write to Caitlin Ostroff at caitlin.ostroff@wsj.com

Copyright ©2020 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8





Source link

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like

U.S.

The leader of a small hard-line party says he will try to form a unity government with Prime Minister Benjamin Netanyahu’s opponents. Sunday’s...

Tech

The woman who led the design of Bumble’s dating app in the run-up to the company’s February initial public offering is joining Twitter Inc.,...

Tech

Video platform Rumble said it is receiving an investment from a group of prominent conservative venture capitalists including Peter Thiel and “Hillbilly Elegy” author...

U.S.

The Conservatives deleted a tweet on Thursday that leader Erin O’Toole has said was “detracting” from important conversations about the COVID-19 vaccine rollout...

Copyright © 2020 ZoxPress Theme. Theme by MVP Themes, powered by WordPress.