Elon Musk is ‘definitely too influential on Bitcoin prices’ says head of crypto hedge fund—but that may change

Elon Musk caused even more mischief in Bitcoin price developments late Thursday and into Friday, leading at least one crypto hedge fund manager to consider the CEO of Tesla Inc. and the prolific Tweeter to be “too influential on the Bitcoin market. Prices “.

“Musk is definitely too influential on Bitcoin prices,” Kevin Kang, co-founder and director of BKCoin Capital, told MarketWatch in email comments when attending a Bitcoin conference in Miami.

Kang’s remarks come after Musk was released on Thursday night cryptic tweet that many in the digital asset world interpreted the billionaire’s breakup from bitcoin. The tweet featured the Bitcoin logo and a broken-hearted emoji.

Finally, check the Bitcoin prices
BTCUSD,
+ 1.27%

were down over 4% and changed hands on CoinDesk at $ 36,960.93, the decrease being due to Musk’s latest writing.

The price of Dogecoin
DOGEUSD,
+ 0.56%
,
for whom Musk was one of the greatest champions, lost 2.5% and changed hands at 38.5 cents.

Musk’s social media messaging has had a huge impact on Dogecoin and Bitcoin prices, and he’s been blamed, at least in part, for Bitcoin’s ongoing slump and the broader crypto complex. An article in the Wall Street Journal last month described it as Bitcoin’s biggest influencer.

Last month, Musk tweeted that Tesla would no longer accept Bitcoin as a means of payment for its vehicles, citing the large carbon footprint of digital mining for Bitcoin. The tweet is still reverberating in crypto circles, sparking a debate about the sustainability of Bitcoin mining.

Also read: Elon Musk’s partner Grimes says: “AI is the fastest route to communism”

Back in February, Tesla
TSLA,
+ 4.58%

revealed that it has acquired some $ 1.5 billion in Bitcoin in a filing with the Securities and Exchange Commission.

Of course, Bitcoin is influenced by geopolitical events and tweets from other prominent figures in the industry. However, Musk has become a common and powerful voice in the crypto arena, with his prominence possibly being reinforced after he played an episode of. moderated as a guest “Saturday Night Live” Early last month that was widely considered to be the spread of crypto to the masses. That’s also when Musk at some point suggested that crypto like Dogecoin, Bitcoin, and Ether
ETHUSD,
+ 1.91%

On Ethereum’s blockchain, one segment could be a rush to the chagrin of some crypto cops.

Kang said that Musk’s power over crypto at the end of the day is not dissimilar to what some traditional investors may have over more conventional markets.

“It’s no different from what we see with traditional assets, however, when big-name hedge fund managers disclose their positions and move those names,” said Kang.

“I think the more he tweets, the more immunized the market will get in the future, but right now he’s definitely one of the big influencers of the Bitcoin market.”

Of course, Bitcoin is still solidly up 27% in 2021, and Dogecoin is up nearly 8,000% year-to-date.

In comparison, traditional assets have seen more mundane gains. Gold futures
GC00,
+1.11%

have fallen by less than 0.1% in the year to date; the Dow Jones Industrial Average
DJIA,
+ 0.52%

is up over 13%, the S&P 500 index
SPX,
+ 0.88%

is up almost 13% and the Nasdaq Composite Index
COMP,
+1.47%

has increased by more than 7% in the year to date.

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