Elon Musk’s tweets have once again sent bitcoin on crazy times. He is playing games in the digital assets space. It is certainly alarming that a one-word tweet from the world’s richest man can make waves in the bitcoin space. Bitcoin has fallen below $43k because of this.
Although Elon Musk has clarified that his company, Tesla has not sold any bitcoin after the earlier suggested the opposite but the damages have already been done.
This is not the first time Musk is doing this. How much do we need to believe him? After all, I remember Elon also mentioned talking to Dogecoin developer, I wonder who he spoke to. Nothing much has been changed on Github for $doge for a long while.
Thanks, Jarosław Adamowski for citing my comments on Twitter to this article. Around 6 hours before this message, I wrote this to warn some of my opportunist friends who are putting on high leverages to be careful when they thought they bought the dip. Some of them got burnt out from the dip.
“I urge all to be careful when buying cryptocurrencies. Do not be greedy and act on comments that are irresponsible, be it from Elon or some other ‘gurus’. It is your money and it is your life. Exercise with caution.” commented Anndy Lian.
This is what I have said 6 hours ago. I agree with @ki_young_ju, don't take too much leverage for your $BTC #bitcoin on your long positions. Leverage with caution for your #altcoins too. https://t.co/GeVvRQDmgW https://t.co/sDPCv67Z2P
— Anndy Lian (@anndylian) May 17, 2021
If you are on high leverage, avoid liquidation. pic.twitter.com/BGLpQg8pEt
— Anndy Lian (@anndylian) May 17, 2021
Fundstrat’s Tom Lee Boosts Bitcoin Target 25% Despite Musk’s Criticism
Tesla’s recent declaration it would no longer be accepting bitcoin (BTC), paired with bearish statements by its CEO Elon Musk, have done little to shake the certainty of investment research firm Fundstrat Global Advisors. The New York-based advisory business has increased bitcoin’s price target for 2021 to USD 125,000, up 25%.
“I don’t think it’s going to get people negative on bitcoin, but it is going to get people to focus on the problems that are being created by digital assets,” Tom Lee, Managing Partner of Fundstrat, told Business Insider. “It is probably better to view it as a call to action for the bitcoin industry to focus on renewables or more efficient ways to provide proof of work.”
Some of his previous forecasts were either too bullish or too bearish.
In either case, according to him, it was possible Musk was influenced by people within his organization.
“Many people come to Tesla because it’s ESG-friendly,” Lee said, making a reference to the environmental, social, and governance criteria screened by some investors. “I think some of these same people might’ve just questioned, well, if you want to accept a digital currency … maybe it shouldn’t be bitcoin”.
Tesla said last week that they are “concerned about rapidly increasing use of fossil fuels for Bitcoin mining and transaction especially coal, which was the worst emissions of any fuel.” A day before, Reuters reported that Tesla is seeking to enter the multi-billion dollar US renewable credit market, hoping to profit from the Biden administration’s march toward new zero-emission goals.
Also, per Business Insider, Lee said he’s undeterred by bitcoin’s waning market dominance, or the percentage of the total market capitalization, which currently fluctuates around 40%, according to various data providers. It was around 70% in the beginning of this year.
“Bitcoin dominance will actually grow during a bear market,” Lee was quoted as saying.
In its April analysis, Fundstrat estimated that bitcoin’s price target for this year was USD 100,000.
One of the factors behind Fundstrat’s forecast was that corporations would be entering the crypto market in a bigger way in 2021.
“We think this is starting to happen more and will be one new source for capital flows into the crypto economy,” the company said. “Even if Facebook didn’t buy bitcoin, corporates are coming, and it may not be reflected in earnings announcements yet.”
Jack Dorsey-led Square confirmed that their BTC strategy hasn’t changed and they are “deeply committed to this community, including working towards a greener future through our Bitcoin Clean Energy Initiative.” The company said it continues to assess their bitcoin investment “on an ongoing basis.” In February, Square said they spent USD 170m on BTC.
Meanwhile, according to Justin Chuh, Senior Trader at digital asset investment manager Wave Financial, “gravity and volatility” in the crypto market still exists.
“When combining fundamentals such as positive net inflows of BTC to exchanges, mixed with the previously mentioned technicals of lower high and lower low, we can ignore what large egos and influencers say, and see that a pullback was bound to happen. But we have to accept that those voices chirping around on social media aren’t helping and can actually make moves. This is healthy, but I think we all wish this didn’t happen,” he said in an emailed comment.
At 11:23 UTC, BTC trades at USD 44,610 and is down by 9% in a day and 23% in a week.
Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author “Blockchain Revolution 2030”.
Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.
An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.