Tesla CEO Elon Musk has earned a reputation within the crypto community as a person who can literally launch thousands upon thousands of transactions by a single tweet. However, his recent tweet about allegedly speaking with North American Bitcoin miners did not give the crypto its much-needed boost to leave the $30K trenches.
After posting the above tweet, Bitcoin rose by about $2,000 from $36,000 to $38,000. But that was two days ago. At the time of writing, Bitcoin price is at $39,024.29, according to CoinGecko. Interestingly, compared to the past, Elon’s tweets would move the market way higher (or lower) than the current price. This may suggest a couple of things.
Firstly, the crypto market’s crash isn’t caused solely by Elon Musk. A lot of other factors must have caused the sheer loss of the market. Secondly, whales may not be basing their trading patterns from Elon. Thirdly, Elon may be gradually losing his charm among the crypto community.
In an article by CNN, Celsius CEO Alex Mashinsky said:
People who followed Musk blindly have lost a lot of money. They may have gotten burned and never come back.
To be fair to Elon, MicroStrategy CEO Michael Saylor, a well-known Bitcoin bull who manages billions of dollars’ worth of BTC, confirmed that he hosted a meeting between Elon and the identified miners. Fortunately, the latter agreed, according to Saylor, to form a Bitcoin mining council to promote sustainability initiatives across the globe.
Another possible reason for Elon’s relatively uninfluential tweet may be that the crypto market may now be in bear territory.
As the chart above shows, Bitcoin has fallen below the 200-day Simple Moving Average (SMA). This is the first time that it has happened so in a year. In fact, even when BTC was struggling to hit its 2017 all-time high (ATH) of $20,000, it never traded below the said indicator since June 2020.
If Bitcoin and other crypto are already in bear market, then traders and holders need to brace for impact. To be sure, it’s going to be quite a ride.
