Diamond Hands: Elon’s take on the drop in Cryptocurrency Prices

With the cryptocurrency trade tokens suffering a significant fall in prices, the trader base and the investors are already looking towards the major trendsetters and market influencers like Elon Musk and VitalikButerin, among others, to make supporting announcements and tweets, which in turn would lead to the rise in token value. SpaceX and Tesla CEO Elon Musk is a big name for the cryptocurrency trade. He is a prominent supporter of this new form of currency since the beginning. He has shown his support to the trader community and more unique cryptocurrency tokens wholeheartedly and openly to the world. 

Elon Musk is known for trading and owning large sums in crypto value. He is also happens to be the second richest man on earth, and the advice and tweets coming from him are a big deal in the market. Ever since the start of 2021, there have been many fluctuations in the market for cryptocurrency trade due to multiple factors ranging from changing regulatory decisions among countries to significant investors and supporters donating a considerable number of tokens to help fight the pandemic. Among the list of market benders, Elon’s name comes up instantly associated with the market trends as soon as the numbers start to fluctuate. 

The recent rise in cryptocurrency demand globally was caused by the speculations of its widespread acceptance as a means of payment for various things in the market. Initially, Tesla’s announcement to accept crypto values as means of payment for its cars started this trend of widespread acceptance for bitcoins and other cryptocurrencies. However, since then, Elon has made multiple announcements to justify declining cryptocurrency altogether, blaming the increasing energy and fossil fuel consumption, leading to an alarming increase in carbon footprint due to cryptocurrency mining.  Elon Musk’s recent post on Twitter in the talks seems as an attempt to revive the trader and investor’s interests in these difficult times when the market falls considerably. The recent tweet with diamond and according to market analysts is the depiction that Tesla will not be selling its $1.5 billion Bitcoin holding and that Tesla has diamonds like cryptocurrency in their  possession that will grow higher in value again soon. The effects of the tweet have not been reflected in the market, but it is still to see how these attempts at winning over the trader and investor base and gaining their trust in cryptocurrencies work out.