At 10 a.m. Hanoi time, Bitcoin dropped 3.4% to trade at $37,390. This negative move disrupted the market’s stable trend this week after heavy swings in May. The Bloomberg Galaxy Crypto Index fell by 3.9%.
Musk has repeatedly sent Bitcoin and other cryptocurrencies on a rollercoaster ride with his social media posts. Most notably last month, he reversed Tesla’s decision to accept Bitcoin for car purchases, citing environmental concerns over Bitcoin mining. China’s tough crackdown also rattled the crypto market.
In his latest tweet, Elon Musk wrote “#Bitcoin ??” and shared an image featuring lyrics from Linkin Park’s song “In the End.”
Earlier, the Tesla CEO also caused a stir when his tweet about the song “Baby Shark” sent shares of Samsung Publishing, the second largest shareholder of the song’s producer, soaring.
Currently, Bitcoin is about $27,000 below its April peak near $65,000. Despite today’s dip, this drop is less severe than some previous swings triggered by Musk’s tweets.
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Many of Bitcoin’s strongest supporters argue this decline could be a setup for new record highs. However, Musk’s environmental concerns have cast doubt on the idea that Bitcoin will soon gain widespread acceptance.
After announcing Tesla would stop accepting Bitcoin payments, Musk clarified the company hasn’t sold any of its Bitcoin holdings. His ongoing posts about cryptocurrency have sparked speculation about Tesla’s motives. Back in February, Tesla revealed a $1.5 billion Bitcoin investment but sold 10% of it according to April financial reports.
Despite May’s volatility, Bitcoin is still up 285% this year, while Ether has gained over $1,000. The Bloomberg Galaxy Crypto Index has increased sixfold.
