Bitcoin price tanks after Elon Musk suggests he has ‘broken up’ with crypto

Bitcoin, etherium, and dogecoin dropped by several per cent as a result

Adam Smith
Friday 04 June 2021 16:28 BST
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The value of cryptocurrencies dropped after Elon Musk tweeted a meme which implied he was breaking up with his relationship with bitcoin.

The Tesla CEO posted a meme about a couple breaking up over excessive quoting of Linkin Park lyrics. Mr Musk shared the meme with “#Bitcoin” and a heartbreak emoji.

He then posted another ambiguous post, linking a breakup with falling prices.

As a result, bitcoin fell approximately 6 per cent, with ethereum dropping 7 per cent and the meme-based dogecoin falling 8 per cent.

This is far from the first time that Elon Musk’s tweets have affected the cryptocurrency market. Last month, the billionaire took to Twitter to announce that Tesla would no longer be accepting bitcoin payments in exchange for its electric cars – which caused a minor cryptocurrency crash. Tesla did not respond to a request for comment from The Independent at the time before publication.

“Tesla has suspended vehicle purchases using Bitcoin. We are concerned about rapidly increasing use of fossil fuels for Bitcoin mining and transactions, especially coal, which has the worst emissions of any fuel”, the electric car company CEO had tweeted.

“Cryptocurrency is a good idea on many levels and we believe it has a promising future, but this cannot come at a great cost to the environment.

“Tesla will not be selling any Bitcoin and we intend to use it for transactions as soon as mining transitions to more sustainable energy. We are also looking at other cryptocurrencies that use <1% of Bitcoin’s energy/transaction.”

Mr Musk had previously announced his support for the cryptocurrency in January this year, after changing his Twitter bio to “#bitcoin”, alongside its “B” symbol. He also made Tesla vehicles available to purchase via the cryptocurrency, before reneging on the position.

Dogecoin has also been dramatically affected by the current mentality of the billionaire. Mr Musk plugged the digital coin on Saturday Night Live, but called it a hustle and as a result, its price crashed again.

Several cryptocurrency investors have pleaded with Elon Musk to stop tweeting, with William Quigley, Managing Director of Magnetic, a cryptocurrency investing firm, advising people: “Do not pay attention to Elon Musk’s comments about anything in crypto at least over the longer term.”

In February 2021, it was reported by financial newswire service First Squawk that the Securities and Exchange Commission was looking into Mr Musk’s tweets. The agency had also previously investigated Mr Musk over his tweets about Tesla stock. In May 2020, Tesla’s share price fell after Musk tweeted: “Tesla’s stock price is too high imo”; Mr Musk and Tesla paid paid $20m settlements as a result, and the company agreed to have its lawyers look at and submit some of the CEO’s social media posts.

However, The Wall Street Journal recently reported that Tesla failed to oversee Elon Musk’s tweets in violation of court ordered policy. The company was apparently accused of abdicating “the duties required of it by the court’s order”. Tesla did not respond to a request for comment from The Independent before time of publication.

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