Bitcoin slid after a cryptic tweet from Elon Musk hinting at a potential split with the leading cryptocurrency, the latest tweet from the tech billionaire, to buffet the token’s price. The price of bitcoin dropped as much as 3.4% and was trading at about $37,790 as of early eastern trading time. The decline dented this week’s stabilization in the crypto sector after a rout in May.
Elon Musk continues to trigger crypto prices with his tweets.
The well-known tech billionaire Elon Musk has roiled Bitcoin and other cryptocurrencies with a string of social media posts. Most notably, the tycoon last month reversed a decision to allow purchases of Tesla electric vehicles with Bitcoin, citing the environmental concerns because of the energy required by the servers underpinning the cryptocurrency. The recent crackdown by Chinese regulators on bitcoin mining and trading also led to a plunge in the sector. In his latest tweet, Musk wrote “#Bitcoin” with a broken heart emoji quote retweeting a meme including a lyric from the popular song “In the End” by Linkin Park.
Tesla has not sold its bitcoin holdings.
The leading cryptocurrency bitcoin is about $27,000 shy of its mid-April record of almost $65,000. While it slipped today, the decline was more modest than past episodes of Musk-led volatility. The biggest believers in cryptocurrency argue that the token is just consolidating before a run higher to new records. However, Musk’s spotlight on environmental risks and the way his tweets drive swings in prices have hurt the narrative of bitcoin’s mainstream adoption. It is also interesting to note that after suspending Bitcoin payments to Tesla, Musk later said that the company hadn’t sold any of its holdings of the digital token.