Bitcoin Continues to Perform Wild Swings Amid Elon Musk Effect

The world’s largest crypto asset by market cap Bitcoin continues to perform wild price swings as Elon Musk continues to impact the crypto market through his tweets.

 

Bitcoin’s price fell Friday morning, June 4, after Elon Musk posted a tweet suggesting he has fallen out of love with the world’s largest cryptocurrency. On June 4, he shared a meme about a couple breaking up and added a Bitcoin hashtag and a broken heart emoji.

Bitcoin price began to fell shortly afterward. The price fell from above $39,000 levels to $35,905 by Friday evening. The price then recovered slightly after Square CEO Jack Dorsey announced that the digital payments company is considering creating a hardware wallet for Bitcoin. The coin closed Friday near $37,000.

The crypto community joined the discussion to defend Bitcoin. Tron CEO Justin Sun replied to Elon Musk with a loving heart emoji and said:

“I will buy all the #Bitcoin that @elonmusk sells.”

But Elon Musk’s teasing with the crypto market did not end there. As the price was recovering from the previous-day plunge, on Saturday, June 5, another tweet put the Bitcoin back into a nosedive. He tweeted:

“Goods & services are the real economy, any form of money is simply the accounting thereof”

bitcoins btc

Shortly after the tweet, Bitcoin slipped to $35,803 on Saturday evening, according to data provided by CoinMarketCap. The price continued to fell to $35,003 before starting to recover on Sunday, June 6.

As usual, he was heavily criticized by the community. Brendan Blumer, CEO of Block.one, the tech company behind the EOS.IO blockchain, replying to Musk, wrote:

“Bitcoin is a monetary network inclusive of self-custody and global transferability, therefore it is also “goods and services” like banks and money services businesses. A parallel financial system offers value propositions far beyond a store of value – cannot compare 1 to 1”

Gabor Gurbacs, the Director of Digital Assets Strategy at VanEck, trolled Musk for his remarks by saying “Can I buy a Tesla with bushels of wheat?”

Elon Musk started the uptrend of the crypto market when his car company bought $1.5 billion worth of bitcoin in February 2021 and added Bitcoin as a payment method in March. But he also started the recent correction with his May 13th announcement about suspending Bitcoin as payment on Tesla over environmental concerns.

Despite the recent turmoil, the crypto community is hopeful as Bobby Lee believes that the 2021 Bitcoin bull run is not over, and the real Bitcoin bull run is yet to come.

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