Bitcoin Finds Support, Musk’s Influence Over Crypto Questioned

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Last Updated on 18 May 2021 by CryptoTips.eu

Jeroen Kok

Jeroen is one of the lead copywriters on Cryptotips.eu and discusses all recent events in the crypto market. This includes news updates, but also price analyzes and more. He developed his passion for cryptocurrency during the bull run in 2017. He has learned a lot since then. The combination of cryptocurrency and creative writing is perfect for Jeroen and an excellent way to share his knowledge with a wide audience. Find me on LinkedIn / jeroen@cryptotips.eu
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Bitcoin finds support near the $42k level and has been steadily rising since. Currently it is trading around $45,000. Ether also crawled its way back in the green in the past few hours, currently trading around $3.5k.

As the MSM (mainstream media) partied over the apparent crypto crash of the past week, many questioned how much sway Tesla CEO Elon Musk holds over the cryptosphere. By now, most agree that it was his comment that Tesla would no longer be accepting Bitcoin payments that started the recent correction.

On the other hand, his comments of yesterday that his company had not yet sold their Bitcoin holdings came at a moment when Bitcoin was hitting an important technical support level of $42k, which seems to be holding.

Advertentie.

Influence of Tesla on Bitcoin

Analysts are unsure about what is to come next.

Mihir Kapadia of Sun Global Investments believes a tough summer may lie ahead, stating:

Crypto markets continue to be source of frustration, as they hit their lowest since February. Elon Musk, who has had one of the biggest influences on the market in recent times, tweeted over the weekend that Tesla could be selling its holdings in Bitcoin.

Despite later clarifying that nothing had been sold, this still sparked a rapid sell-off as investors feared the worst. Prices fell to lows of $42,212.56, and we could expect crypto markets to struggle to reach its previous highs due to the current sentiment being held towards Musk and his drastic market actions as of late.

Jeroen Blokland, analyst for Dutch bank Robeco, broke down in figures how strange it is that Musk has so much sway, commenting:

It’s ‘interesting’ to see that one person, whose company owns less than 0.2% of an asset class, which aims to be a store of value, has such an impact on price.

tendo23 / Depositphotos.com