“Elon Musk proved that he can change the market with just one word,” CNN commented on the 17th. On the 16th local time, Musk hinted on social media that Tesla, the company he created, may have dumped all cryptocurrencies, causing the price of Bitcoin to plummet. From “the leader of the currency circle” to “the public enemy of the currency circle,” Musk has become a target of public criticism. A senior domestic cryptocurrency investor told the Global Times reporter on the 17th that Musk’s appeal has driven many new investors into the market, which actually brings them a lot of risks. “Many people are beginning to realize that, Musk may be cutting leeks.”
A Twitter user with the online name CryptoWhale posted on the 16th local time in the United States, “When bitcoin players find out that Tesla has sold out their bitcoins in the next quarter, they will want to slap themselves. Musk I won’t blame him for being hated so much.” Under the tweet, Musk replied, “It is true.” Reuters believes that Musk’s response may be affirming Tesla’s selling behavior, or it may mean that he has been criticized, but investors tend to think that this is a suggestion against Bitcoin.
Musk’s voice caused Bitcoin to plunge by more than 9% to $42,185 on the 17th, the lowest since February 8, and Ether fell by about 8%. Dogecoin also fell nearly 7%. However, Musk later said on Twitter that “Tesla has not sold any Bitcoins.”
As the founder of Atlas and SpaceX, Musk has always been a cryptocurrency supporter. According to the US CN-BC website, Tesla disclosed in a document submitted to the US Securities and Exchange Commission in February this year that the company purchased $1.5 billion in Bitcoin. Recently, Musk has taken a fancy to Dogecoin, another cryptocurrency. But Musk recently “admitted” Dogecoin as a scam in a variety show in the United States, which caused its price to drop by 34%. Musk also stated that Tesla has suspended accepting Bitcoin as a payment method for purchasing its cars. “We are concerned about the rapid increase in the use of fossil fuels in Bitcoin mining and trading, especially coal,” Musk said. Musk’s swaying remarks have repeatedly caused large fluctuations in cryptocurrency prices, which has also led some investors to criticize him for “manipulating the market.” Dogecoin co-founder Palmer even called him a “selfish liar.”