Bitcoin Falls After Elon Musk Tweeted Breakup Meme

Elon Musk, founder and chief engineer of SpaceX, speaks at the 2020 Satellite Conference & Expo on March 9, 2020 in Washington, DC. Musk answered a series of questions related to SpaceX projects during his appearance at the conference.

Win McNamee | fake images

The price of Bitcoin fell on Friday morning after Elon Musk posted a tweet suggesting that he had fallen in love with the world’s leading cryptocurrency.

The billionaire CEO of Tesla tweeted a meme about a couple who broke up over the fact that the male partner was quoting Linkin Park lyrics, adding the hashtag #Bitcoin and a heartbroken emoji.

Bitcoin fell nearly 6% to a price of $ 36,432 around 3 a.m. ET on Friday, according to data from Coin Metrics. Other digital currencies followed suit, with cryptocurrency n. 2 ether dropping 7% to $ 2,600 and dogecoin, Musk’s favorite crypto, sinking nearly 8% to around 36 cents.

Bitcoin has had a wild year, hitting a record high of over $ 64,000 in April, only to then drop to nearly $ 30,000 the following month. It’s now more than 40% off its all-time high, though it’s still up nearly 30% so far in 2021.

It’s not the first time Musk’s tweets on crypto have rocked the market. In May, he said that Tesla would stop accepting bitcoin as a payment method due to concerns about its energy use, reducing hundreds of billions of dollars in value from the entire crypto market in a single day.

In a new note this week, JPMorgan said that institutional investors weren’t buying the drop in bitcoin and suggested that prices might have to keep falling.

Proponents of Bitcoin view the digital currency as a store of value similar to gold, arguing that it can act as a hedge against inflation as central banks around the world step up stimulus in response to the coronavirus crisis. But skeptics say that Bitcoin is a speculative bubble waiting to burst.

Thousands of bitcoin investors have flocked to Miami this week for a conference dedicated to cryptocurrency. Miami Mayor Francis Suarez is a believer in bitcoin, telling CNBC on Thursday that the city is “actively watching” employees who pay in crypto.

“I think cryptocurrencies are fake money,” Andrey Kostin, president of Russia’s VTB Bank, told CNBC’s Hadley Gamble at the St. Petersburg International Economic Forum on Friday. “Somebody is sitting in some mining and mining place like in the Middle Ages and then they use them.”

“No government will accept it because it is not subject to any government regulation,” he added. “They can’t control it.”

Kostin alluded to various initiatives by the central bank to develop digital versions of existing money such as the dollar, the euro, the Chinese yuan or, in Russia’s case, the ruble.

“It is inevitable,” he said. “The whole world is moving towards a digital world. And the currency is not excluded from this process ”.

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