Cryptocurrency markets

The expert explained the influence of Elon Musk's tweets on the bitcoin market

The expert explained the influence of Elon Musk's tweets on the bitcoin market
As the Wall Street Journal notes, Musk has become the most influential person in the Bitcoin space. Bitcoin has dropped from record highs by about 40% since he announced Tesla was no longer accepting BTC as payment.
Recent tweets about Musk's collaboration with North American miners to tackle Bitcoin's environmental issues have lifted the rate from about $ 30,000 lows.
The expert explained the influence of Elon Musk's tweets on the bitcoin market

The expert explained the influence of Elon Musk's tweets on the bitcoin market

Martin Green, top manager at Cambrian Asset Management, explained why Musk's tweets are having such a huge impact on the cryptocurrency market. According to Green, Musk’s tweets are not so important as the medium in which he writes:

Often the news itself, like Elon Musk's tweets, would have different consequences in a different situation. You can light a match in the middle of my path to the house, and you can take this match and throw it on the floor in an open area. A monstrous difference in the consequences, but still the same match.
Greene believes the cryptocurrency market has been overreacting to market news due to the amount of leverage in the system, which creates cascading pressure from sellers. The lack of institutional purchases on the spot market has also added fuel to the fire.
However, Green noted that there are a number of favorable factors for the industry. There are macroeconomic forces that indicate a lack of investment in cryptocurrency by institutions, he said. Ethereum was highlighted, which is clearly underestimated by major players.

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