Elon Tweets, Bitcoin Price Dips, Again

While Musk’s influence on the price of bitcoin is not a surprise, it’s still shocking to realize how much difference one tweet by the Technoking can make.

article-image

Elon Musk, Tesla; Source: Shutterstock

share

key takeaways

  • “As more institutional investors come into the space, we expect Musk’s tweets to affect the market less and less, but we are far from that point at the moment,” said Kevin Kang, BKCoin Capital
  • Bitcoin’s current price is well below fundamental valuations

Bitcoin 2021, Miami — Attendees at Bitcoin 2021 in Miami got a rude awakening (if they slept at all) thanks to Elon Musk’s latest tweet of “#Bitcoin” and a broken heart, which subsequently sent the value of bitcoin down 6.3%.

Loading Tweet..

While Musk’s influence on the value of bitcoin is not a surprise, it’s still shocking to realize how much difference one tweet by the Technoking can make. And Bitcoin 2021 attendees and speakers aren’t having anything to do with it.

According to a report from Fox Business, Max Keiser began a fireside chat by saying, “F-ck Elon!” several times. 

Meanwhile, an electronic billboard truck is making the rounds outside the convention center telling Elon to “Stick to space.”

Stick to space Elon sign at Bitcoin 2021
An electronic billboard truck making the rounds at Bitcoin 2021. Photo courtesy of Kevin Kang, BKCoin Capital

Price volatility is nothing new to hyperbitcoiners used to the ups and downs of the digital currency. However, the reaction of the value fluctuation to Musk’s tweets is a sign that bitcoin is still in a nascent stage with few institutional investors, according to Kevin Kang, founding principal at BKCoin Capital, who has written on the topic previously for Blockworks.

“The market movement post Musk’s tweets continues to show how nascent this asset class is. After all, Musk’s Tesla did purchase $1.5 billion worth of Bitcoin back in February for its treasuries and a lot of new retail investors tend to panic sell post Musk’s tweets,” he said. 

“As more institutional investors come into the space, we expect Musk’s tweets to affect the market less and less, but we are far from that point at the moment,” he said, adding, “Bitcoin’s current price is well below fundamental valuations. PlanB’s stock to flow model shows bitcoin being worth around $65,000 as well as NVT price valuation being at around $55,000.”

At the time of publication bitcoin was at $37,080.23, according to CoinGecko.

Read more of our coverage from Bitcoin 2021 here.

Tags

Upcoming Events

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

recent research

Research

article-image

The House embraces crypto — but keeps the fences up

article-image

The network got slower in June — and it wasn’t for tech-related reasons

article-image

After a jittery few months, recent economic data is hinting at a resilient economy that is beginning to re-accelerate

article-image

The stablecoin bill now heads to the president’s desk

article-image

The House on Thursday passed the CLARITY Act, a landmark cryptocurrency market structure bill

article-image

Interchain Labs will focus on sovereign L1s and institutional demand, abandoning plans for smart contracts on the Cosmos Hub