Crypto Crumbles Amid Musk, Miami, & Meme Stock Miasma

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by Tyler Durden
Friday, Jun 04, 2021 - 08:18 AM

Crypto markets took a spill overnight after Elon Musk took to Twitter (once again) to troll the HODLers with a 'broken-heart' emoji and two memes...

Musk has previously said Tesla would not sell its bitcoin, but his tweets were enough to unsettle markets still fragile following May's crash.

"He's trolling the community," said Bobby Ong, co-founder of crypto data aggregator and analytics website CoinGecko.

That  - reportedly - sparked a $2000-plus drop in Bitcoin..

Source: Bloomberg

Friday's fall pushed bitcoin below its 20-day moving average to $37,710, and took some of the edge off its week-to-date gains - though it has still climbed nearly 6% to put it on course for its best week in about a month.

And sent Ether and the rest of the crypto space lower...

Source: Bloomberg

Many responded to Musk's tweet with mockery..

And then there was this...

TRON founder Justin Sun also replied to Musk...

Musk’s latest tweets come right before the Miami Bitcoin 2021 event that is set to kick off this morning, touted as the “largest Bitcoin event in history.”

Some of the personalities expected at the event include Miami Mayor Francis Suarez, Bitcoin (BTC) permabull and MicroStrategy CEO Michael Saylor, Twitter’s Jack Dorsey and the Winklevoss twins — Cameron and Tyler Winklevoss — among others.

Mayor Suarez recently revealed that he bought Bitcoin after the United States Senate passed its $1.9 trillion stimulus bill back in March.

Additionally, some have suggested the renaissance of the meme-stock mania could well spill over into the highly volatile crypto space.

Should history repeat itself, some argue that investors could re-embrace altcoins next - in particular, memecoins to complement the "meme stocks" phenomenon.

Finally, as CoinTelegraph reports, seasoned market participants called for a longer-term perspective on Bitcoin.

Veteran trader Peter Brandt, who said that $21,000 would be the ultimate floor for BTC/USD under current circumstances, was firmly in favor of a bullish continuation.

Why would someone bail out of non-leveraged longs when the market already had 80% of worst-case drop?” he argued earlier in the week.

Another publicly bullish opinion came from Bloomberg Intelligence, which in its latest monthly report described cryptocurrencies en masse as “discounted and refreshed.”

Bitcoin is more likely to resume appreciating toward $100,000 resistance rather than sustaining below $20,000,” it summarized.

Fundamentals remained stable for Bitcoin, with hash rate - and therefore miners - unresponsive to Musk.

MicroStrategy CEO, Michael Saylor, gets the last word:

“Buy #bitcoin, they’re not making it anymore.” - Mark Twain