Elon Musk's Effect on the Crypto Space

Cryptocurrencies are highly volatile, and the industry giant is the latest victim of price volatility. From a record high of nearly $65,000, Bitcoin now trades slightly above $40,000, according to Coinmarketcap. The $20,000+ price drop is deemed Musk’s irresponsible manipulation, and the crypto community has had mixed reactions towards him as a result.

So, is Bitcoin’s massive tumble a result of the usual volatility? If you have been following up on the crypto industry lately, perhaps you know the dip might fall back on Tesla CEO Elon Musk.

Musk’s Stand on the Crypto Space

The SpaceX CEO is visibly pro-cryptocurrency and claims to have the crypto space’s best interest. He has on some occasions, somehow downplayed Bitcoin and Doge. Though for the better part, the CEO has had a positive stand about the coins. Besides, who would invest $1.5 billion in something they don’t believe has a bright future? Musk’s car company Tesla put the amount on its books in February this year and even started accepting Bitcoin for payment.

In one of his recent tweets, Musk wrote that cryptocurrency is a good idea on many levels and that its future is luminous. The tweet, however, took a twist at the end, adding that cryptocurrencies cannot come at the cost of the environment.

Musk was addressing the recent concerns facing Bitcoin over its energy efficiency. As revealed by his response to a Twitter user’s comment, the sometimes world’s richest man does not even rule out the idea of creating his crypto coin. He admits it is an immense pain in the neck but says he would make a coin that meets all his needs only if Doge fails to do it.

Should Musk Flip the Coin? BTC or DOGE?

There are thousands of cryptocurrencies in the market, but Musk’s love for Bitcoin and Dogecoin is on another level. Although his perception about Bitcoin seems to have taken a U-turn, he has been pro-Bitcoin for some time. Musk has been posting positive messages about Bitcoin and Dogecoin on Twitter, positively impacting the prices of both digital currencies.

In January, Musk even added the hashtag #bitcoin to his Twitter bio, and the simple gesture pushed Bitcoin’s prices up by 20%. He posted two days later, saying that Bitcoin is a good thing, and admitted to being a supporter.

However, Musk’s relationship with Bitcoin took a bitter turn after he allegedly discovered that Bitcoin consumes a lot of electricity. The Tesla founder has expressed his concern for the rapidly increasing use of fossil fuels for Bitcoin mining and has even reversed his decision to accept Bitcoin as payment.

Tesla has, however, not sold any of its $1.5 billion worth of Bitcoins and does not intend to sell. Musk revealed in a tweet that his company wants to use its Bitcoin holdings for transactions once the coin transitions to more sustainable energy.

Elon is now a key proponent for Dogecoin and seems to have high hopes in the meme coin. He at one point referred to himself as the Dogefather, although it remains unclear how much he has invested in the currency.

According to a tweet he made on May 14, the tech mogul is working with Dogecoin developers to improve its transaction efficiency, adding that it is potentially promising. Musk’s support is now entirely behind Dogecoin. After his tweet about working with Doge devs, the coin surged from 43 cents to more than 50 cents a DOGE.

Elon Musk Toying with the Crypto Market

Musk’s influence on Dogecoin started when he tweeted on February 4 with the word ‘Doge.’ The tweet saw Dogecoin’s price surge by 20%. His latest influence came on Thursday after Dogecoin prices spiked slightly following his tweet supporting the Shina Inu Dog-inspired meme coin. ‘How much is that Doge in the window?’ he wrote.

Musk changed his position in using Bitcoin, a move that has seen prices drop massively. The majority of the crypto community feels that Musk is irresponsibly manipulating the industry. The billionaire is somehow receiving hate.

The distaste against Elon’s suggestions birthed the STOPELON coin, a movement aimed at stopping his influence. Crypto analyst Simon Dedic felt a little agitated to share a good morning wish with Musk, tweeting ‘Good morning to all except Elon Musk’.

The Reddit community is not left behind in the ongoing criticism. Musk’s turn against Bitcoin seems to make some people believe that cryptocurrency is overall a pump and dump scheme. One user argues that Elon Musk just found a brilliant fundraising technique without selling off his company shares.

Barstool Sports founder David Portnoy also believes that Musk is manipulating the crypto industry. Speaking to his host Stuart Varney on Wednesday, Portnoy admitted that he was also manipulating the industry, although he wished he could do it to the extent that Musk does.

“One moment, Elon will say ‘Bitcoin is great, and the next he will say ‘it’s bad for the environment. The next moment he is keeping it, then says he loves Doge and Doge is environmentally friendly,” says Portnoy, who feels this is frustrating for many people.

Wrapping Up

Volatility is one of the significant aspects of the cryptocurrency industry. Every investor knows the space is highly volatile, and there are never guarantees for ROI. However, Bitcoin investors feel that the current tumble in Bitcoin prices is not just an ordinary market crush. Tesla CEO Elon Musk’s ‘bittersweet tweets’ are under scrutiny.

Dogecoin, on its side, could be heading towards a rally as Musk throws his full support towards the meme coin. However, the tech mogul has always been unpredictable. Whether Elon Musk will rally his support for BTC once again is not guaranteed. Nonetheless, his company has not sold any Bitcoin yet, which spells there may be plans to use it once Bitcoin goes energy efficient.

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