At 10 AM (Hanoi time), Bitcoin dropped by 3.4% and was trading at $37,390. This negative trend has impacted the stability observed in the cryptocurrency market this week, following significant fluctuations in May. The Bloomberg Galaxy Crypto Index has decreased by as much as 3.9%.
Musk has repeatedly caused Bitcoin and other cryptocurrencies to rise and fall like a “rollercoaster” with his social media posts. Most notably, last month he reversed his decision to allow customers to buy Tesla cars with Bitcoin, citing concerns that Bitcoin mining would harm the environment. Additionally, China’s strict measures have also shaken the cryptocurrency market.
In his latest Twitter post, Elon Musk wrote “#Bitcoin ??” and shared an image featuring the lyrics to “In the End” by Linkin Park.
Previously, the Tesla CEO also left investors dizzy when he caused the stock price of Samsung Publishing – the second-largest shareholder in the producer of the famous YouTube song Baby Shark – to surge right after he tweeted about the song.
Currently, Bitcoin is about $27,000 below the peak set in April, when the price nearly reached $65,000. Although it has dropped today, this fluctuation is not as tense as some previous volatility due to the billionaire’s tweets.
Currently, the most enthusiastic Bitcoin supporters argue that this drop will serve as a springboard for the currency to continue setting new record milestones. However, Elon Musk’s environmental risk perspective has impacted the notion that Bitcoin will soon achieve widespread acceptance in the future.
After announcing that Tesla would stop accepting payments in Bitcoin, Elon Musk stated that the company has not sold any of its Bitcoin holdings. His continuous posts about this cryptocurrency have sparked speculation about why Tesla is consistently commenting on digital currency. In February, Tesla revealed a $1.5 billion Bitcoin investment but sold 10% of it according to the financial report released in April.
Despite the strong volatility in May, Bitcoin has still increased by 285% this year, while Ether has risen over $1,000. The Bloomberg Galaxy Crypto Index has increased sixfold.