The tech magnate and billionaire, Elon Musk, with his latest tweet crashed the crypto market again, which as of May 17, 12:00 PM IST is 44849.00 USD. After pumping the price of his favorite Altcoin, Dogecoin to 0.7$ has now tweeted about dumping Tesla’s Bitcoin Holding which created quite a stir in the crypto market.
Indeed— Elon Musk (@elonmusk) May 16, 2021
Following Musk’s response to a tweet saying, “Bitcoiners are going to slap themselves next quarter when they find out Tesla dumped the rest of their #Bitcoin holdings. With the amount of hate @elonmusk is getting, I wouldn’t blame him.”, to which he replied “Indeed”, many holders started dumping their Bitcoin holding assuming a crash when the billionaire cashes out his 1.5 Billion USD worth of Bitcoin holding.
Bitcoin is actually highly centralized, with supermajority controlled by handful of big mining (aka hashing) companies.— Elon Musk (@elonmusk) May 16, 2021
A single coal mine in Xinjiang flooded, almost killing miners, and Bitcoin hash rate dropped 35%. Sound “decentralized” to you?https://t.co/Oom8yzGRNQ
Musk last week announced that Tesla won’t accept the world’s most popular cryptocurrency, Bitcoin, citing the environmental drawbacks of the said digital currency, which crashed the Bitcoin by over 10000$, making Elon Musk, the Bitcoin nemesis I guess!
To clarify speculation, Tesla has not sold any Bitcoin— Elon Musk (@elonmusk) May 17, 2021
While Tesla liquidating their investment is unlikely to happen soon, netizens started cashing out their holdings as soon as the news hit the internet crashing the value of Bitcoin drastically. This news also gives an upper hand to Dogecoin as he praised Doge’s efficiency in transactions.
The simple answer to this question is “Credibility”. Elon Musk, the CEO of Tesla and SpaceX and 3rd richest person on this planet is enough to prove his influence and credibility.
The likes of billionaires like Elon Musk and Mark Cuban are enough to push the market up or down because of their credibility. For example, if Millionaires tells you that he invested around 1000$ in a particular stock, you would also consider investing at least 100$ because the particular stock is now a “tip to millionaire” for your sentiments.
Ideally, Doge speeds up block time 10X, increases block size 10X & drops fee 100X. Then it wins hands down.— Elon Musk (@elonmusk) May 16, 2021
This is the exact reason why I refer to both crypto and the stock market as “Sentimental Market”, while this sentiment is also affecting the Dogecoin in a positive manner as it saw a return of over 10000 percent in 2021 itself and it may seem to achieve the 1$ milestone soon as Tesla announces their collaboration with Doge developers to improve the existing system, making it the “The Future of Cryptocurrency”.