Coin exchange rate depends on Elon Musk’s word, right?

On May 18, 2020, the price of bitcoin temporarily hit $43,000, falling 30% from the $63,000 recorded in mid-April 2021. The background of the plunge in the bitcoin market is the confusion caused by Tesla Elon Musk’s remarks and massive fraud related to crypto assets are pointed out.

Bitcoin price was lower than $43,000 on May 17-18 at one time, trading at the lowest price in three months since February 2021. According to reports, the price of bitcoin fell because investors were worried about Elon Musk’s behavior. Musk made it clear on March 24 that Tesla responded to bitcoin payments, but Tesla announced the suspension of support after 49 days. The cryptocurrency market was in great turmoil, with more than 41 trillion dollars lost due to the sudden fluctuations in the exchange rate. Elon Musk also showed signs of a move to sell bitcoins, saying yes to tweets suggesting that Tesla will sell bitcoins.

But soon after, he announced that Tesla did not sell bitcoin, and the bitcoin exchange rate recovered, but it is still below $45,000.

Another factor that ignites this situation is the abundance of cryptocurrency-related scams. The Federal Trade Commission’s FTC released a report on May 17 that reported more than 7,000 cases of cryptocurrency fraud and $80 million damage since October 2020. These damages also included the case of scamming $2 million in posts on Elon Musk’s social media.

Regarding Elon Musk’s impact on the cryptocurrency market, one expert explains that it is an unprecedented magical thing to keep the price of Bitcoin and Dogecoin moving due to Elon Musk’s whims. Dogecoin is a cryptocurrency based on the Internet meme Doji, and Musk is also known to be actively participating in the development and operation. Dogecoin is rapidly gaining attention in recent years as Elon Musk frequently mentions it.

Elon Musk tweeted about a tweet criticizing the words and actions surrounding Bitcoin, saying that when he saw such an unpleasant thread, he wanted to go all-in to Dogecoin. Related information can be found here.