Elon Musk has had a long history with Bitcoin.
He tweeted several times about Bitcoin, and each tweet has a clear and explicit impact on Bitcoin and the crypto market in general.
Hours ago, “Elon Musk” tweeted that Tesla may return to accepting bitcoin in the event that the bitcoin mining process becomes 50% renewable energy, so that bitcoin will rise minutes later, and the price of bitcoin is currently at the level of $ 39,400.
Analyst Thomas Lee believes that bitcoin and the cryptocurrency market needs to develop further to stem extreme volatility following comments from prominent people like Elon Musk.
He sees “Thomas Lee” Managing Partner “fundstrat”:
Bitcoin should develop further from the current point due to the fact that it is fluctuating in double digits after most of Elon Musk’s tweets on social media.
In Lee’s view, recent price movements show that there has been little, if any, institutional impact on the market so far.
Will Bitcoin remain at the mercy of Elon Musk’s comments?
The relationship between the CEO of Tesla and the underlying cryptocurrency continues to evolve in 2021, with major implications for price movements.
After the electric vehicle manufacturer said it had bought $1.5 billion worth of bitcoin, the cryptocurrency soared to an all-time high.
On the other hand, when the CEO of the company criticized the high energy consumption used in bitcoin mining and Tesla’s disruption of bitcoin payments, the price of bitcoin was affected and began to decline.
Even brief comments containing only emoji (broken heart emoji) affected the price with rapid fluctuations.
And the latest example of the influence that Elon Musk has on Bitcoin is what Musk tweeted about the possibility of Tesla returning to accept Bitcoin on the condition that the mining process is performed with a clean card.
As a result, Bitcoin has risen more than 10% since his words reached news sites.
These developments have raised concerns among crypto enthusiasts.
It was reported last week that South African billionaire businesswoman Magda Wirzeka stated that Elon Musk intentionally manipulated prices for personal gain.
Thomas Lee, head of research at Fundstrat, also voiced his opinion on the matter, stressing that Bitcoin should not move in this way under the influence of Elon Musk.
It is worth noting that the mayor of Miami, “Francis Suarez” who has made clear his support for cryptocurrency for a while, also shared a similar view.
Suarez recently stated that Bitcoin will emerge as a legitimate store of value once the volatility caused by the effects of Musk’s effects ends.
Institutional impact is still small:
Although quite a few institutions have entered the Bitcoin ecosystem in the past year or so, including MassMutual, One River Asset Management and Paul Tudor Jones… Lee also believes that the influence of these institutions is not Still very young.
Prominent businessman Kevin O’Leary is on the same page criticizing Elon Musk’s actions and pitying the weakness and fragility of Bitcoin and its impact at the present time.
He told O’Leary that institutions haven’t joined in in a big way yet, and if they do, bitcoin will go up and make it harder for Elon Musk or his ilk to influence bitcoin’s price movement.