Elon Musk at it again as he continues to toy with bitcoin price as he backs miners going green
The world’s largest cryptocurrency advanced as much as 19 per cent to trade around $US39,944 ($51,525) following the tweets. It has slumped to as low as $US31,132 on Sunday.
“If the market continues to see wild swings based on Elon Musk tweets, it’s going to be a big setback for this asset
class. The fact that it sees such wild swings to the tweets from one person takes away the legitimacy of the asset
class,” said Matt Maley, chief market strategist for Miller Tabak + Co.
A spokesperson from Galaxy confirmed that a company mining representative participated in the call. Hut 8 Mining
tweeted that it also was on the call, and would be part of an effort to “educate the market that sustainable mining is
possible and a priority.”
The timing is conspicuous
Two weeks ago, Musk roiled the crypto world when he said Tesla wouldn’t accept bitcoin
for cars because of its energy-intensive proof-of-transaction process. While the creation of a mining industry
council might standardise energy-usage reporting, it will take years for many of the largest miners to recalibrate
where they source their energy.
Musk’s tweet criticising the energy usage sent bitcoin tumbling the most in years, wiping more than $US500 billion
from its market value. He later tweeted that he still believed in bitcoin, helping the token recoup some of its losses. The volatility persisted through the weekend before a modest rebound on Monday got supercharged by his latest online missive.
Saylor, CEO and founder of Microstrategy announced last week that his enterprise-software company bought more
bitcoin as prices fell, bringing its holdings to approximately 92,079 bitcoins, which it says were acquired for about
$US2.25 billion at an average of about $US24,450 per token.
A host of crypto bulls are lining up to hype the industry as it holds one of its biggest conferences of the year this
week. Federal Reserve Governor Lael Brainard noted at the Consensus conference that a big issue for central banks
with regard to a digital currency is the impact on the financial system.
By Cynthia N.
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