TL;DR Breakdown
- Tom Lee says crypto market needs to evolve to stop reacting to Musk tweets
- The relation between Elon Musk tweets and crypto prices is not healthy
- Some analysts even compare Elon Musk tweets with stock market manipulative behavior
Thomas Lee, managing partner at Fundrat and popular financial analyst has said that the crypto market need to evolve further to stop fluctuating hard after comments from powerful individuals like Elon Musk.
He said this against the backdrop of price action after Elon Musk, Tesla CEO announced that the firm would resume receiving Bitcoin payment when miners largely begin using clean energy. The prices of Bitcoin and other cryptocurrencies began going up prompting Tom Lee’s comments.
Relationship between Elon Musk and Bitcoin price
Bitcoin Price has continued to bow to manipulations from Elon Musk in 2021 especially after every tweet by the billionaire.
After the EV-maker earlier this year said it had purchased $1.5B worth of BTC, the asset skyrocketed towards new all-time highs.
In contrast, few weeks back when the firm’s CEO bashed the high energy consumption used for bitcoin mining and Tesla disabled payments, BTC started tumbling. Bitcoin prices now so har to Elon Musk comments that simple tweets with just emojis affects the crypto price with rapid swings.
Yesterday was the most recent. Musk said Tesla would enable BTC payments once “there’s confirmation of reasonable (~50%) clean energy usage by miners.”
Bitcoin is up by more than 10% since his words reached every news outlet and is closing down on $40,000 now.
Thomas Lee in his response said that the crypto market still has to evolve further owing to how it responds to actions by a company or individuals.
Miami mayor, Francis Suarez also has made similar comments in the past saying Bitcoin will be a good store of value when Elon Musk-induced volatility works itself out.
Musk influence, a pointer to weak institutional influence
Thomas Lee has said institutional influence in the crypto space is still weak as few firms have fully entered into the crypto space.
Kevin O Lery says the same thing. In an interview with Cryptopotato, he said that institutions are yet to come onboard and believe they are waiting for all ESG issues to be resolved before purchasing substantial quantities.
