Elon Musk Endorses Bitcoin Amid Crypto Market Volatility
Billionaire entrepreneur Elon Musk praised Bitcoin’s “true energy basis,” the first mention in years, reigniting interest in the cryptocurrency while global traders are concerned about a possible crypto market crash.
Elon Musk Mentions Bitcoin After Years.
Musk’s interest in cryptocurrency started a conversation within the community. A tweet on the 14th of October reads “Bitcoin is based on energy; You can issue fake fiat currency, and every government in history has done so, but it is impossible to fake energy.”
A tweet from ZeroHedge, which Musk seemed to reply to, had focal points of rising gold, silver, and Bitcoin prices in the “debasement trade” to fund the global AI arms race. He also refers to the “excessive money” printing under the “magic money computers” description and the $37 trillion debt as a concern in the long run.
Musk criticizes the possible capital expenditures in AI funded by governments, mainly the U.S. and China, claiming they are likely to “debasing” the currency of the nation.
This reflects a positive change in Musk’s perceptions. In the past, he condemned Bitcoin, citing its environmental impacts. Now, he seems mostly interested in Dogecoin, having discussed its integration into X Money. Musk’s proposal for a pro-Bitcoin political movement in the U.S. shows that he is more in favor of Bitcoin adoption these days.
How the Market Responds to Musk’s BTC Advocacy
The billionaire’s endorsement caused Bitcoin’s price to rise cautiously. It is trading at $112,011. In the last day, the highest price of Bitcoin was $116,020. It managed to trade recently at a price of $111,569. Price movement is accompanied with the drop of trading volume by 18% over the last day. This suggests lack of market activity is prevalent for the upcoming speech of the Federal Reserve Chair, Jerome Powell.
According to CoinGlass, the lack of market activity is accompanied with interest in the derivatives market. BTC futures open interest has risen by 0.1% in the last hour to $72.98 billion. This is in decline by 1.3% in the last 4 hours and close to 3.5% in the last 24 hours reinforcing the idea that the market has a lack of activity.
Musk’s return to endorsing Bitcoin coincides with a tumultuously volatile and uncertain crypto market, the last sentiment for which handlers are trying to positively shift. It is expected that endorsements from bullish handlers like Musk will provide lift to crypto pricing trends albeit temporary. With the Bitcoin’s energy theory attracting considerable attention, the potential for adoption, regulation, and market momentum are heavily speculated.
Musk’s return to crypto conversations- Bitcoin specifically– reiterates that the currency has firmly taken its position in the crypto global financial arena.
