The world’s most famous cryptocurrency, Bitcoin, has come under pressure after a series of tweets by the SpaceX founder Elon Musk criticized the token and described it as a “highly centralized digital asset.”
The impact of the tweets was seen in the market as the BTC plunged more than ten percent and lost more than $100 billion in the market. As of now, the digital asset has a market cap of more than eight hundred billion.
#Bitcoin is clearly not a store of value as it has no real value to store. But since some people are willing to buy it anyway, it has a price, which gives it a market value. Bitcoin has lost 1/3 of its market value in the past month. How does that qualify it as a store of value?
— Peter Schiff (@PeterSchiff) May 16, 2021
Musk’s criticism proved to be a golden chance for the longtime Bitcoin critic Peter Schiff to further question the digital asset’s value and its highly volatile nature. He further questioned BTC’s status as a safe-haven asset, citing that one person’s tweet can have so much impact on the currency’s value.
Over the years, Peter Schiff has put gold over its so-called “killer” and has continuously denounced the number one crypto asset as a store of value. Although BTC has broken all crucial support levels in the last week, crypto experts have suggested that the token is likely to bounce back anytime soon.
Not only that, amidst the currency saga around Bitcoin, the top official of Binance also took to Twitter, defending the digital assets’ market and its most famous digital token, arguing the fluctuation has always been a part of the market.
There are always fluctuations in the market, for all kind of reasons. You can blame others for what they tweet (their freedom). Or you can take advantage of the opportunities.
Not financial advice.
— CZ 🔶 Binance (@cz_binance) May 17, 2021
Meanwhile, some blockchain experts have suggested that the BTC is likely to bounce back as its progress has been similar to the stock market. Following Musk’s remarks, the crypto market plunged, while the Nasdaq index surged nearly two percent, giving investors hope that BTC might gain back its value.