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- The CEO of SpaceX still believes that possibly Bitcoin is overvalued
- During the initial hours of February 22, Bitcoin plunged below $ 53,000
- Many are attributing the fall of Bitcoin to Elon’s recent tweet
Just a few weeks ago, tycoon Elon Musk made a big bet into Bitcoin with $ 1.5 billion through his entity Tesla. The transaction surged the market value of the crypto asset above one trillion dollars. The leading cryptocurrency, thus, struck a value above $58,000.
The Sudden Fall in Bitcoin Value
However, despite the benefits he received from the purchase, the CEO of SpaceX still believes that Bitcoin is overvalued. Since February 21, Bitcoin (BTC) is reflecting peaks that were pointed towards. Bit recently, during the initial hours of February 22, Bitcoin plunged below $ 53,000, hinting at a significant drop that ranged between 8 and 10%.
Ethereum, the second-biggest crypto asset per the market capitalization, struck a record of above $2,000 per unit on February 21. Although it also plunged to around $ 1,700 this Monday, one can observe significant development, as Ethereum began the annual trading at just $ 730.
According to experts, Elon obtained 43,000 Bitcoins during multifold activities in January. The median price was almost $ 35,000 last month. Besides, the company announced itself all set to welcome cryptocurrency as a mode of transactions for its electric cars.
Dan Ives, a specialist at Wedbush Securities, stated that with this respective investment, Tesla earned a billion dollars. He added that to form a perspective on it would be that Tesla is gearing up to increase its investments in Bitcoin than the earnings from the trade of its electric vehicles in the whole of 2020.
The Twitter Series of Elon Musk
Amidst the series of Bitcoin’s ups and downs, a user reprimanded Elon Musk for his perspective on the cryptocurrency on February 19. Peter Schiff, a market strategist, recollected a comment of the Tesla CEO that he made about BTC last year. Elon stated that Bitcoin is a big hoax, just like fiat money. Peter, too, believes the same as he commented that Bitcoin does not hold any logic at all. Instead, claims Peter, that gold is better than all of these options.
A few hours later, the tycoon responded through a Tweet stating that money represents a piece of information that takes away bartering inconvenience. He added that the system is likely to evolve to minimize both latency and error of that information. Next, he highlighted that BTC and ETH appear to be very high.
Many are attributing the fall of Bitcoin to Elon’s tweet, as it automatically creates a situation of cause and effect. However, even when the businessman stated that perhaps Bitcoin is overvalued, its value continued to surge. Meanwhile, the Bitcoin crash did not happen until this Monday morning.
The whole sequence does not fit with the immediate consequences that Elon Musk’s tweets create when it comes to digital assets. Thus, it would be unfair to claim that the businessman led to the fall of cryptocurrency, although the idea cannot be rejected entirely.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
