Bitcoin fell 4% on Friday following a series of tweets by Tesla boss Elon Musk
04 Jun 2021
The price of the world’s largest cryptocurrency dropped after Musk tweeted "#Bitcoin", together with a broken-heart emoji and a picture of a couple discussing a breakup, Reuters reports.
The Tesla founder followed this tweet by posting a breakup comic strip and replying with the word “nice” to an illustration of the Dogecoin digital currency posted by the Coinbase crypto exchange.
Previously, Musk stated Tesla wouldn’t sell its Bitcoin. However, his activity on Twitter was sufficient to unsettle the markets which remain shaky following the crash last month.
According to Bobby Ong, co-founder of crypto data aggregator and analytics website CoinGecko: "He's trolling the community.”
The drop in Bitcoin’s price on Friday pushed it under its 20-day moving average to $37,710 at the time of writing. However, in terms of week-to-date gains, the price still rose 6% to remain on track for its best week in around a month.
Musk has long been an advocate of cryptocurrencies, but last month announced Tesla was no longer accepting Bitcoin as payment for cars due to environmental concerns.
Bitcoin and a number of other cryptocurrencies are still recovering from a crash in May following the Tesla announcement, coupled with news of renewed regulatory scrutiny in China.
Since Tesla unveiled a purchase of $1.5 billion Bitcoin in February, the electric car manufacturer’s stock has fallen by a third. Bitcoin is more than 40% under April’s record high of $64,895.22.
In addition, Ether – the world’s second largest cryptocurrency – fell around 4% on Friday to $2,750, but remains on track for a second straight weekly gain of more than 10%.