Bitcoin (BTC) has come under severe pressure and has tanked more than 10% after Elon Musk suggested that Tesla might dump its Bitcoin holdings going ahead. “Indeed,” Musk seems to be having a strong influence in the crypto space and it has reflected over the last few weeks and months.
— Elon Musk, the 2nd (@elonmusk) May 16, 2021
At press time, BTC is trading 10.98% down at a price of $42,958 with a market cap of $815 billion. Over the last 24 hours, over $100 billion has been eroded from Bitcoin valuations.
This has given a golden opportunity to Bitcoin critics like Peter Schiff to further their Bitcoin (BTC) bashing claims. Schiff went on questioning Bitcoin’s status as legitimate money and a “safe-haven asset” if one single person can have so much influence in its price movement.
If a single @elonmusk tweet can have so much influence over the price of #Bitcoin how can anyone seriously consider it to be money? How can Bitcoin be a safe-haven asset if a one-word tweet puts it at risk? It should be clear by now that buying Bitcoin is gambling, not investing.
— Peter Schiff (@PeterSchiff) May 17, 2021
Schiff Prefers Gold Over Bitcoin
Schiff has always preferred yellow metal Gold over Bitcoin and has denounced every time that Bitcoin is a store-of-value. Writing further about it, Schiff said:
“Bitcoin (BTC) is clearly not a store of value as it has no real value to store. But since some people are willing to buy it anyway, it has a price, which gives it a market value. Bitcoin has lost 1/3 of its market value in the past month. How does that qualify it as a store of value?”
Over the last few weeks, Bitcoin has been breaking crucial support levels as whales have been depositing big quantities at exchanges. Adding to the investors’ woes, Elon Musk has played a bigger spoilsport recently. but some of the market analysts and industry veterans believe that Bitcoin will bounce back once the dust settles. In his recent tweet: Binance CEO Changpeng Zhao writes:
There are always fluctuations in the market, for all kind of reasons. You can blame others for what they tweet (their freedom). Or you can take advantage of the opportunities.
Not financial advice.
— CZ 🔶 Binance (@cz_binance) May 17, 2021
Since Bitcoin (BTC) and the overall crypto market has shown similar movements with the stock market, Chinese analyst Wu Blockchain writes:
“Elon Musk’s inconsistent remarks about Tesla’s bitcoin selling dropped Bitcoin to a minimum of 44260, but the Nasdaq index rose by 2.3%, and Bitcoin is expected to continue to rebound”.
Looking at the price volatility, it is difficult to suggest that the bottom formation is done or there could be further correction going ahead.