Financial expert Elon Musk stops crypto plunge with a single tweet. (Photo: dpa)
It was obviously the signal that the market was waiting for: Elon Musk tweeted several emojis in the usual cryptic way.
Tesla has ???? ????
– Elon Musk (@elonmusk) May 19, 2021
In all probability, the tweet can be read in plain text as “Tesla has diamond hands”. The term “diamond hands” refers to someone in stock market slang who will hold on to their investment to the bitter end. In contrast, an investor with “paper hands” sells his investments at the first sign of a downward trend.
Musk tweet acts like a parachute
Musk’s commitment to hold the Bitcoin shares comes at the right moment. The Tesla boss was recently exposed to a real shit storm after he announced that Tesla would no longer accept Bitcoin as a means of payment. He had given the poor environmental balance as the reason. Immediately after this announcement, the entire crypto market went downhill. It lost around a third of its market capitalization in just one week.
There was speculation that Tesla could have liquidated all of its Bitcoin shares. Most recently, a new decree by three Chinese banking committees provided an additional push downwards.
On Wednesday, Bitcoin had risen by a little more than Moved 21 percent down to around $ 34,500. This increased the losses to almost 40 percent within a week. All other essential crypto values had also lost more than 40 percent.
Impressive. Musk tweet turns a downward trend into an upward trend. (Screenshot: Coinmarketcap / t3n)
Entire crypto market recovers
Musk’s tweet not only stopped the decline of Bitcoin, the second most important coin, ether, has since been on the mend. The same applies to the ADA-Coin of the Cardano blockchain as well as the Binance Coin, the Dogecoin, Ripples XRP and Polkadots DOT. Less clearly, but still noticeably, the following altcoin also gain.
Musk should initially have the shitstorm of angry small investors under control. It is time to think about how healthy an asset is that can be tweeted almost at will by a single investor.
