Elon Musk has gone from hero to zero in the past few days as his tweets are impacting the market way more than we previously predicted. The initial sell-off was rough and we were all waiting to see what would be the true result of his continued negative tweets regarding Bitcoin. On Monday though things have got worse and the entire crypto industry is now in panic mode as the market capitalization of crypto is now below $2 trillion, despite being up over $2.5 trillion just a week ago.
A new petition on Change.org is currently gathering signatures with the intention to make Musk sell his hefty portion of Bitcoin. It was announced a few months ago in an SEC filing that his company had bought $1.5 trillion worth of Bitcoin. Although there is some speculation as to whether or not they currently hold this amount still, given recent Twitter activity by Musk.
This is obviously not going to be legally binding, therefore the only real hope is that Musk will see this petition and react positively because of it, but that is unlikely to happen. It is also unclear to what extent Musk will support other coins in the market. It is also possible of course that after this new low his influence would have diminished as the people who have sold because of his influence would have been removed from the market.
Bitcoin Still Favoured To Hit $100,000 This Year
Despite the markets taking one hell of a hit, the consensus for a $100k Bitcoin this year is still strong. Musk’s tweet have been an unpredictable hindrance to the price but the next few weeks will be critical to understanding if this momentum can be stifled. A lot will have to do with how low we go and for how long?
Technically it is no big deal if we go a bit lower from where we are now if we see a nice bounce. A positive spin would say that we are only 2, 10% days away from being where we were before the tweets of Elon Musk. It is also worth mentioning that some altcoins were having great gains so this would have also contributed to the size of the sell-off.