In a tweet response to economist and cryptocurrency sceptic Peter Schiff, who said that gold was better than both Bitcoin and conventional cash, World’s richest man may have caused the fall in Bitcoin’s price up to 18%.
Two weeks after @elonmusk announced that he spent $1.5 billion of shareholder money buying Bitcoin, #Tesla stock entered a bear market, plunging 20% from its all-time high set on Jan. 25th, and 16% since disclosing the #Bitcoin buy. Not an example other CEOs will likely follow!
— Peter Schiff (@PeterSchiff) February 22, 2021
Bitcoin witnessed an all-time high of $58,300 vey recently, it also hit the $1 trillion market capitalization mark. Although this was an impressive milestone and one any crypto company should be proud of, the prices of Bitcoin fell over 18 percent in a two-day sell-off which took the world-famous and most sought-after crypto currency below the $50,000 mark which it hit earlier this month. Bitcoin was trading at 10.12 percent lower at %50,364 and touched a 24 hour high of $56, 668.45 and a 24-hour low of $47,780.75, as at the time of this drafting but year-to date Bitcoin is up about 73 percent.
While the overall weaknesses witnessed by the financial market might be put to blame for the fall in Bitcoin prices, the tweet of Elon Musk, World’s richest man and owner of electric car company Tesla, may have acted as a catalyst to Bitcoin plummeting fall.
The billionaire and Tesla owner was responding to the words of Economist and crypto critic; Peter Schiff who tweeted that gold was by far a better alternative to both crypto currency and traditional money. In his reply tweet Elon Musk said, ‘Money is just data that allows us to avoid the inconvenience of barter…’ and went further to add, ‘that being said, BTC and ETH do seem high lol’.
The rise of Bitcoin in 2021 has been influenced by the acceptance among mainstream investors and globally prominent companies and firms. For instance Elon Musk’s Tesla invested the sum of $1.5 billion in Bitcoin at the beginning of the month and according to experts at Wedbush Securities, the company has made profit of close to a billion dollars on its investment. Tesla also promised that it would start accepting Bitcoin as a means of payment for its electric cars soon enough. Apart from Tesla, America’s oldest bank; BNY Mellon also revealed that it would start transacting crypto currency for its clients, and payment platforms like MasterCard also recently associated themselves with crypto currency, saying it would be used on its platform.
Elon Musk’s influence over cryptocurrency cannot be denied. Dogecoin was also a partaker of this influence as it saw a rise in its value after the billionaire tweeted about it at the beginning of this month.