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Even if the millionaire does not willingly relinquish his new toy, it may slip through his fingers sooner or later.
Elon Musk’s proclivity to impact the crypto world with devil-may-care tweets was on show once again on Friday, as various cryptocurrencies dropped 10–18 percent in the aftermath of Musk’s latest Bitcoin (BTC) parody.
The Tesla CEO’s tweet, which displayed a Bitcoin symbol next to a broken heart emoji, may have been construed as rather cryptic, but the crypto market responded by falling into a sea of red, wiping off about $100 billion from the global market cap.
Industry executives, while concerned with the influence Musk exerts on the crypto space, are now growing hopeful that Bitcoin can escape his gravitational pull. Friday’s sell-off was actually an example of this, said the chief operating officer of payment network Mercuryo, Greg Waisman, who pointed out that the latest drop wasn’t quite as violent as others had been in the past.
“To a large extent, Bitcoin investors are learning to ignore tweets from Elon Musk and this was made evident as the price drop was not as huge as we have seen before. Bitcoin investors strive to maintain a united front by limiting how they panic sell. This is a good start for Bitcoin,” said Waisman.
Waisman stated that traders are gradually gaining industry expertise that will ultimately render Musk’s tweets obsolete, and that variables such as jurisdictional restrictions would become a more accurate driver of markets in the future.
“We are getting to the point where crypto stakeholders will react only based on relevant fundamentals. The cryptocurrency industry is growing towards maturity, and to a large extent, knowledge accumulation is taking the center stage,” said Waisman.
“As market stakeholders get additional knowledge, they will learn to base their decisions on the influences that matter most, like regional regulations,” he added.
Nick Spanos, co-founder of ZAP Protocol, agreed that previous tweets from Elon Musk had proven more destructive to Bitcoin than the one posted on Friday. Spanos said this was a sign that traders were beginning to ignore Musk’s influence.
“After today’s tweet of Elon Musk which has pushed Bitcoin price down by roughly 5%, there is some sort of resistance from the coin. But despite its drop Bitcoin is comfortably trading above the critical price level of $36,000,” said Spanos.
“From previous trends, the cryptocurrency usually sees steeper plunges but the current 6.83% is a sign that the market is proving to be unmindful of the billionaire’s influence,” he added.
Similar comments were expressed by Konstantin Anissimov, executive director of CEX.IO, who stated that the whole crypto sector couldn’t continue to kowtow to individuals like Musk for much longer and that global regulatory issues will eventually take centre stage.
“I believe that at some point, the crypto market will grow independent of influence from influential people like Elon, regardless of their large Twitter following, and will only bow to influence from regulators and happenings in the global and international market,” Anissimov said.