Could Elon Musk Be The Root Cause Of The Bitcoin Drop?

Could Elon Musk be the root cause of the Bitcoin drop? What has affected Bitcoin, which has been crashing rapidly in recent days?

There is no doubt that Elon Musk has been leading the cryptocurrency market recently. Musk, the CEO of the electric vehicle manufacturer Tesla, causes significant fluctuations in the cryptocurrency market with his posts on Twitter. While Musk's tweets specifically caused the Bitcoin decline, in essence, Bitcoin (BTC) is not the only cryptocurrency affected by this decline. Sharing a tweet about Bitcoin in the past week, Musk has seriously fluctuated the market. So much so that, including MicroStrategy, one of the biggest Bitcoin bulls, sharp declines were observed in crypto-based traded stock prices.

Bitcoin Took A Huge Hit

There was talk on Twitter the other day that Tesla may have sold all of its BTC assets. Later on, Musk stated that "Tesla did not sell any Bitcoin." Bitcoin, which regressed to the level of $ 42,000 in those minutes, is now trading around $ 40,000. On the other hand, Elon Musk's shares affect not only the Bitcoin price, but the entire cryptocurrency market. There are also sharp decreases in the stock prices of companies that are active in Bitcoin or investing large amounts in Bitcoin. The shares of business intelligence company MicroStrategy, which bought more than 91,000 BTC (currently worth more than $ 4 billion) in the past few months, fell 7 percent in the process. In addition, stocks of Coinbase, the largest US cryptocurrency exchange, lost 5 percent, Jack Dorsey's crypto-friendly digital payments company Square stocks lost 4 percent, Bitcoin mining companies Riot Blockchain 10 percent, and Marathon Digital Holdings 8 percent. Therefore, it is not surprising for the market that Elon Musk, who besides his criticism of Bitcoin, praised Dogecoin, was sued for being a great speculator.