BUSINESS

Bitcoin’s Rebound is Stopped by Musk’s ‘Trolling.’

Bitcoin

Bitcoin fell 4% on Friday when Tesla CEO Elon Musk resurfaced, this time with a series of tweets that appeared to be lamenting a breakup with the cryptocurrency. Tesla’s significant bitcoin holdings and Musk’s massive personal following frequently agitate crypto markets, and the price of bitcoin plummeted when he tweeted “#Bitcoin,” a broken-heart emoji, and an image of a couple contemplating a breakup.

Musk then followed up with a breakup comic strip and a “nice” response to an artwork of rival crypto dogecoin shared by cryptocurrency exchange Coinbase. It was unclear what any of the tweets meant, if anything at all.

Musk has previously stated that Tesla will not sell its bitcoin, but his remarks have shaken markets that are still reeling from the May crisis.

“He’s trolling the community,” said Bobby Ong, co-founder of crypto data aggregator and analytics website CoinGecko.

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Bitcoin fell below its 20-day moving average of $37,710 on Friday, reducing its week-to-date gains to roughly 6%, putting it on track for its best week in roughly a month.

Musk has long been a proponent of cryptocurrencies, but he has become a skeptic of bitcoin when Tesla halted plans to accept it as payment for automobiles due to concerns about its energy use

Bitcoin and several other cryptocurrencies are still rebounding from a slump that occurred last month as a result of that decision, as well as rumors of increased regulatory scrutiny in China.

Since February, when Telsa announced a $1.5 billion bitcoin purchase, the stock has dropped by a third, while bitcoin has dropped by more than 40% from its April high of $64,895.22.

The second-largest cryptocurrency, ether, was also hit by sellers, falling approximately 4% to $2,750 on Friday, but it still on track for a second consecutive weekly increase of more than 10%.

Dogecoin, which Musk helped turn from a joke at the bottom of the value heap to a multi-billion dollar market cap, too dropped slightly before stabilizing at just under $0.40 on Friday.

Since Sunday, it has risen by roughly 40%.

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