Here we go again. Bitcoin dropped more than 7% on Thursday, June 3, 2021, after tweets by Elon Musk outlining a "breakup" between himself and the crypto. This, once again, moved the crypto market into a spiraling decline. With Tesla's big position in Bitcoin and Musk's massive personal following, the entire community, alongside the markets, are put on edge whenever he tweets.
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This is not financial advice. I am not a financial advisor.
Please do your own research before making any decisions before investing.
This article is meant for educational purposes only.
Elon Musk has been a big supporter of crypto in the past but has turned critical of Bitcoin since suspending the ability to purchase Tesla vehicles. This comes from a growing concern from the company regarding the energy usage of the Bitcoin blockchain. Tesla stock has fallen by a third since the announcement of the $1.5 billion Bitcoin purchase back in February. Following the same path, Bitcoin is now more than 40% below April's all-time-high value of $64,895.22.
The simple act of sending out a social media post to a massive following shouldn't be enough to sway the community into a frenzy. While it is easy to fall into this trap of FUD, the relationship between the asset and investor should ideally be stronger than influencer media. If the proper research is conducted and currency is moved around correctly, the crypto community will continue to thrive. The impact of influencers over the past couple of months have both positively and negatively effected the crypto community. We, ourselves, are probably paying closer attention to all the hype as well!
This makes following the market more difficult, as you need to stay up to date and follow multiple outlets to ensure you are getting fast, efficient news in an already volatile market. Just watch, the next time a major media platform/influencer discusses crypto, head over to your favorite market tracking app and see how this affects the price live time. It's insane and I hope we, the crypto community, can put an end to the madness over time.
That's why it's important to do your own research by looking at various different sources. News and media can be extremely biased, especially in this day-in-age. Keep a watch for malicious news, hype accounts, fake promos... etc; and be vigilant! Before you make any decision, whether good or bad, you're better off checking multiple different variants of news or market coverage and cross-checking factual information. Overall, it's not the best idea to throw your money at hype instead of facts and information.
Do you think the crypto market will ever be unaffected by media?
Let us know in the comments down below!
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