The Bitcoin drama continues

A Sunday afternoon Twitter storm sent the cryptocurrency markets into chaos. Elon Musk tweeted “indeed” to a post that indicated Bitcoin supporters could get punished next quarter if they find out Tesla dumped the remaining holdings of Bitcoin.
Musk has been actively supporting Dogecoin and becoming a critic of Bitcoin. He reminded traders that Bitcoin is actually highly centralized and that the mid-April Xinjiang flood of a coal mine led to the disruption of 35% of all Bitcoin’s global computing power(hash rate).

Bitcoin plunged over 9% on Sunday and fell into bear-market territory since Musk’s SNL appearance earlier in the month. Early Monday, Musk tweeted, “To clarify speculation, Tesla has not sold any Bitcoin.”

Bitcoin is stabilizing after Musk’s last tweet about Tesla not selling out Bitcoin, but his legion of followers might not be getting behind every endorsement tweet anymore.

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Ed Moya

Ed Moya

Senior Market Analyst, The Americas at OANDA
With more than 20 years’ trading experience, Ed Moya is a senior market analyst with OANDA, producing up-to-the-minute intermarket analysis, coverage of geopolitical events, central bank policies and market reaction to corporate news. His particular expertise lies across a wide range of asset classes including FX, commodities, fixed income, stocks and cryptocurrencies. Over the course of his career, Ed has worked with some of the leading forex brokerages, research teams and news departments on Wall Street including Global Forex Trading, FX Solutions and Trading Advantage. Most recently he worked with, where he provided market analysis on economic data and corporate news. Based in New York, Ed is a regular guest on several major financial television networks including CNBC, Bloomberg TV, Yahoo! Finance Live, Fox Business and Sky TV. His views are trusted by the world’s most renowned global newswires including Reuters, Bloomberg and the Associated Press, and he is regularly quoted in leading publications such as MSN, MarketWatch, Forbes, Breitbart, The New York Times and The Wall Street Journal. Ed holds a BA in Economics from Rutgers University.
Ed Moya