Bitcoin (BTC) came under heavy pressure and lost more than 10% after Elon Musk suggested that Tesla could get rid of its Bitcoin holdings in the future. “Indeed,” Musk appears to have a strong influence in the crypto space and this has been reflected in the past few weeks and months.
– Elon Musk, the 2nd (@elonmusk) May 16, 2021
At the time of going to press, BTC is trading down 10.98% to a price of $ 42,958 with a market cap of $ 815 billion. In the past 24 hours, over $ 100 billion has been eroded by Bitcoin’s valuations.
This gave Bitcoin critics like Peter Schiff a golden opportunity to push forward their Bitcoin (BTC) bashing claims. Schiff has continued to question Bitcoin’s status as a legitimate money and a “safe haven” if one person can have so much influence over its price movement.
If only one @Elon Musk tweet can have so much influence on the price of #Bitcoin how can we seriously consider it to be money? How can Bitcoin be a safe haven if a one-word tweet puts it at risk? It should be clear by now that buying Bitcoin is a game, not an investment.
– Peter Schiff (@PeterSchiff) May 17, 2021
Schiff prefers gold to bitcoin
Schiff has always preferred the yellow metal Gold to Bitcoin and has denounced each time that Bitcoin is a store of value. Writing further on this subject, Schiff noted:
“Bitcoin (BTC) is clearly not a store of value because it has no real value to store. But since some people are willing to buy it anyway, it has a price tag, which gives it market value. Bitcoin has lost 1/3 of its market value over the past month. How does that qualify it as a store of value? “
Over the past few weeks, Bitcoin has broken through crucial support levels as the whales have deposited large amounts on the exchanges. Adding to the woes of investors, Elon Musk recently played a bigger spoiler. but some market analysts and industry veterans believe Bitcoin will rebound once the dust settles. In his recent tweet: Binance CEO Changpeng Zhao writes:
There are always fluctuations in the market for all kinds of reasons. You can blame others for what they tweet (their freedom). Or you can take advantage of the opportunities.
No financial advice.
– CZ Binance (@cz_binance) May 17, 2021
Since Bitcoin (BTC) and the overall crypto market have shown similar movements with the stock market, Chinese analyst Wu Blockchain writing:
“Elon Musk’s inconsistent remarks on Tesla’s bitcoin sale caused Bitcoin to drop to a low of 44,260, but the Nasdaq index rose 2.3%, and Bitcoin is expected to continue to rebound.”
Looking at the price volatility, it is difficult to suggest that the formation of the bottom has ended or that there could be a further correction in the future.
The content presented may include the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication assumes no responsibility for your personal financial loss.