Bitcoin system must shield itself from effects of Elon Musk’s tweets, analyst says  PlatoBlockchain Data Intelligence. Vertical Search. Ai.

Bitcoin system must shield itself from effects of Elon Musk’s tweets, analyst says 

Bitcoin system must shield itself from effects of Elon Musk’s tweets, analyst says  PlatoBlockchain Data Intelligence. Vertical Search. Ai.

Thomas Lee, head of the independent research firm Fundstrat Global Advisors, said the crypto market needs to “evolve” to protect itself from sudden fluctuations. 

These flash fluctuations, as everybody knows, are usually caused by announcements from powerful individuals like Elon Musk. 

Lee is concerned about the double-digit fluctuations in bitcoins which were caused by simple tweets from the billionaire.

In his tweet, he said: “Just a personal observation, but the fact crypto and bitcoin prices respond to actions by a company or individual show this market still needs to evolve further.” 

Tweets that move bitcoin

What makes Musk’s tweets powerful enough to move bitcoin’s value is the fact that people take him seriously. 

With his series of ambitious and successful ventures, including his big holdings on bitcoin, people believe that whatever he says will affect the cryptocurrency and other markets. 

With the wide-reaching effects of Musk’s tweets, he is often accused of deliberately manipulating bitcoin’s value to his advantage.

Magda Wierzycka, the richest woman in Africa, is one of the latest high-profile individuals to accuse Musk of bitcoin manipulation. 

The tweets’ impact is actually small

Even with the sweeping power of Musk’s tweets, Lee still believes that their impact is still very small. 

According to him, only a few institutions have participated in the bitcoin ecosystem for the past few years, making outsiders still insulated from the effects of Musk’s tweets. 

Kevin O’Leary, a Canadian businessman and TV personality believes that many institutions are planning to jump into the bitcoin ecosystem. They are just waiting for critical environmental, social and governance (ESG) issues to be resolved before purchasing massive quantities of the crypto. 

Image courtesy of Cointelegraph News/YouTube

Source: https://bitcoinerx.com/blockchain/bitcoin-system-must-shield-itself-from-effects-of-elon-musks-tweets-analyst-says/

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