Tesla CEO Elon Musk continues to influence the market today. As AZCoin News reported, Musk’s tweet about Bitcoin next to the broken heart emoji sent the crypto market in a red sea, as close to $100 billion departed the global market cap.
— Elon Musk (@elonmusk) June 4, 2021
Elon Musk tends to sway the crypto space with devil-may-care tweets was on display again
Elon Musk’s tweets are slowly falling out of favor in the cryptocurrency market. There are quite a few opinions that Musk should stop doing this because they are really concerned about Musk’s influence on the crypto space. In it, industry executives are increasingly hopeful that Bitcoin can escape the gravity of the Tesla CEO.
First, Greg Waisman, chief executive officer of payment network Mercuryo, said today’s sell-off is really an example of this.
“To a large extent, Bitcoin investors are learning to ignore tweets from Elon Musk and this was made evident as the price drop was not as huge as we have seen before. Bitcoin investors strive to maintain a united front by limiting how they panic sell. This is a good start for Bitcoin.”
Traders are slowly accumulating industry knowledge that will eventually render Musk’s tweets irrelevant. Because, although Bitcoin fell, this sell-off was not as large as the previous ones. It also proves that traders and investors are gradually getting more knowledgeable. At the same time, he added that factors such as regulation will become more precise drivers for the market in the future.
“We are getting to the point where crypto stakeholders will react only based on relevant fundamentals. The cryptocurrency industry is growing towards maturity, and to a large extent, knowledge accumulation is taking the center stage. As market stakeholders get additional knowledge, they will learn to base their decisions on the influences that matter most, like regional regulations.”
Accordingly, Nick Spanos, co-founder of ZAP Protocol also concurs with the point that Elon Musk’s previous tweets have proved more Bitcoin-destroying than today’s tweet. Spanos thinks this is a sign that traders are starting to ignore Musk’s influence.
“After today’s tweet of Elon Musk which has pushed Bitcoin price down by roughly 5%, there is some sort of resistance from the coin. But despite its drop Bitcoin is comfortably trading above the critical price level of $36.000.”
“From previous trends, the cryptocurrency usually sees steeper plunges but the current 6.83% is a sign that the market is proving to be unmindful of the billionaire’s influence.”
Finally, Konstantin Anissimov, managing director at CEX.IO, shares a similar view. He noted that the entire crypto market cannot bow to mere individuals like Musk for much longer and that global regulatory issues will soon become central.
“I feel at some point the crypto market will grow independent of influence from influential people like Elon irrespective of their large follower base on Twitter and only bow to influence from regulators and happenings in the global and international market.”
Prior to the moment that Musk’s tweet, a massive amount of new investors bought a whopping 570,000 BTC
It is known that before Elon Musk caused Bitcoin to drop 3% earlier today, a large number of new investors bought a huge amount of Bitcoin. Among them, a pool of 622,000 new wallets purchased approximately 570,000 Bitcoins at an average price of $35,600.
The IOMAP reveals that 622k addresses had previously bought approximately 570K $BTC at a price of around $35,6k | Source: IntoTheBlock
Glassnode data shows that long-term holders bought BTC, while short-term holders dropped it.
More Bitcoin supply moving from the impatient to the patient | Source: Glassnode
A decrease in the total supply of Bitcoin held by short-term holders and an increase in the supply of BTC stored by long-term ones as the former are selling and the latter are buying dips.
Bitcoin stood at that price about two days ago. This amount of BTC is worth a staggering $20,912,901,000. Bitcoin will now be supported by existing holders and new buyers. Moreover, there is another reason for the decline that is the number of sellers than buyers.