FundStrat’s Managing partner, Thomas Lee has suggested that the crypto market, particularly bitcoin, must evolve to avoid being fundamentally affected by sentimental comments from an influential figure such as Tesla CEO, Elon Musk.
Tom argued that this has become imperative since the leading cryptocurrency usually fluctuates within a double-figure percentage each time Musk comments about it on social media. He also believes that the impact of Musk’s comments on the market shows that institutional investors are yet to make any significant effect on the market.
Musk’s Comments or Actions Shouldn’t Affect Bitcoin’s Performance
So far this year, the SpaceX CEO’s comments have had a profound effect on bitcoin price fluctuation. The primary cryptocurrency rose to new heights after tesla announced its over $1.6 billion investment in it.
Also, the bitcoin price was on a decline following Musk’s tweet about tesla not accepting bitcoin payments due to environmental considerations. Even Musk’s emoji posts on social media cause fluctuation in the price movements of cryptocurrencies.
The most recent example was his comments yesterday night where he stated that tesla would resume bitcoin payments for its vehicles immediately “miners can confirm that they are using at least 50% clean energy for bitcoin mining.”
Few hours after his comments bitcoin rose about over 11% and is about to reach $40K as of this writing. Hence, crypto enthusiasts and non-enthusiasts are worried about this development. Last week, Magda Wierzycka, a billionaire businesswoman from South Africa opined that Musk was commenting those comments deliberately to enrich his pocket.
But Fundstrat’s managing partner has suggested that the leading cryptocurrency shouldn’t react in this manner to Musk’s comments.
Thomas Lee Tweet. Source: Twitter
Francis Suarez, Miami’s Mayor, and long-term bitcoin enthusiasts agree with Lee’s viewpoint. Suarez added that bitcoin’s store of value will increase significantly when it works itself out of its Musk-induced volatility.
Institutional Effects, Not Enough
Lee is also convinced that traditional investments in bitcoin are yet to be felt despite several of them investing in the bitcoin space in the last few months. Prominent examples of recent institutional investors include Paul Tudor Jones, One River Asset Management, and MassMutual.
In an interview with the media, Kevin O’Leary (popular businessman and shark tank co-host) remarked that the industry still requires more traditional investors for them to have any influence on the market.
O’Leary believes more traditional investors will come onboard and those already invested will invest more once there are no more environmental, social, or governance issues surrounding the crypto market space. Consequently, bitcoin’s value will increase and will no longer succumb to the influence of one man – Mr. Elon Musk.
Musk was in the news again after his latest comments caused a surge in bitcoin price. Musk had stated that tesla will start accepting bitcoin payments immediately after it is confirmed that bitcoin is mined with clean energy.
Elon Musk Tweet. Source: Twitter
The bulls have been excited with this new bitcoin price surge. However, despite criticisms from various quarters Musk hasn’t given up on giving his public opinion regarding the cryptocurrency market.
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