LONDON/SINGAPORE: Bitcoin fell more than 7 per cent, with tweets by Tesla boss Elon Musk that appeared to lament a breakup with the cryptocurrency again moving markets.
Tesla’s big position in bitcoin and Musk’s large personal following set crypto markets on edge whenever he tweets, and the price fell after he posted “#Bitcoin”, a broken-heart emoji and a picture of a couple discussing a breakup.
Musk followed up by posting a breakup comic strip and replying “nice” to an illustration of rival crypto dogecoin posted by crypto exchange Coinbase. It was unclear what, if anything, any of the tweets meant.
Musk has previously said Tesla would not sell its bitcoin, but his tweets were enough to unsettle markets still fragile following May’s crash.
“When Elon Musk tweets any crypto-related content, the market... expects a reaction’’, said Nick Spanos, co-founder of ZAP Protocol, a crypto project in Switzerland.
Bitcoin’s fall pushed it below its 20-day moving average to as low as $36,263, and took some of the edge off its week-to-date gains. It is up 2 per cent so far this week.
Musk has been a major promoter of cryptocurrencies but has turned critical of bitcoin since suspending Tesla plans to take it in payment for cars, owing to concerns about its energy use.
Many crypto specialists have struggled to understand the motives behind his tweets.
“He’s trolling the community’’, said Bobby Ong, co-founder of crypto data aggregator and analytics website CoinGecko.
Bitcoin and several other cryptocurrencies are still recovering from a crash last month in the wake of that decision and on news of renewed regulatory scrutiny in China.
— Reuters
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