Billionaire Telsa Elon Musk, who tweeted his tweets about meme-based cryptocurrency dogecoin, pushing it to a $ 10 billion valuation, has warned that the price of bitcoin and ethereum is “looking high.”
The price of bitcoin has risen nearly 500% over the past 12 months, partly as a result of the pro-bitcoin and cryptocurrency tweets by Musk and his electric car company Tesla adding bitcoin to its balance sheet – follows in the footsteps of US software company MicroStrategy
MSTR
Elon Musk, chief executive of both Tesla and SpaceX, has been known as a cryptocurrency … [+]
AFP through Getty Images
The price of bitcoin climbed to $ 57,000 this week, giving it a total value of more than $ 1 trillion, and ethereum, the second largest cryptocurrency, broke $ 2,000 per ether token for the first time – bringing value a total of $ 226 billion for him.
Musk made the bitcoin and ethereum price warning during a discussion on Twitter about the nature of money. Responds gold investor and bitcoin skeptic Peter Schiff, Musk said: “Money is just data that allows us to avoid the inconvenience of swapping. That data, like all data, is subject to error and error. The system will come to a level that reduces both.” that is, bitcoin and ethereum look high. “
Earlier this week, Musk tried to distance itself from Tesla’s $ 1.5 billion purchase, which pushed the price of bitcoin much higher when it was unveiled.
“Tesla’s action doesn’t exactly reflect my opinion,” Musk said via Twitter in response to a Bloomberg interview with a senior bitcoin and cryptocurrency exchange official Binance.
“Getting some bitcoin, which is just a kind of liquidity that is less dirty than money, is bold enough for an S&P 500 company … When fiat money has a real negative interest, only a fool would look elsewhere.B Bitcoin is almost as bs as fiat money.The key word is ‘almost.’ “
Bitcoin’s 2021 mega rally has seen its price almost double since the beginning of the year thanks to a combination of Wall Street institutional adoption, corporate interest, and retail traders gathering into the market.
“There are a number of reasons why bitcoin is going up, but what stands out the most is the trend that MicroStrategy started and enjoyed by Tesla: moving balance sheets institutionalized access to bitcoin to hedge against inflation, “Nicholas Pelecanos, head of trading at blockchain network NEM, said in an emailed comment.
The bitcoin price rally has accelerated in recent weeks, helped higher by Elon Musk and Tesla.
Coinbase
Ethereum, meanwhile, has benefited from the rise of decentralized finance (DeFi) – using cryptocurrency technology to reinvent traditional financial instruments such as interest rates, known as “yield,” and insurance. Many of the largest DeFi projects are built on top of the ethereum blockchain, pushing the price of ethereum higher as users flood the network.
“We have reached an inflection point where people are questioning traditional currency systems and realizing that there are better, fairer options,” said Jai Bifulco, chief commercial officer at blockchain-based precious metals exchange, Kinesis, in email comments.
The broad market of bitcoin and cryptocurrency, which is made up of thousands of digital tokens, is now worth $ 1.7 trillion – up from $ 800 billion at the beginning of January.