Elon Musk’s tweets continue to shape the bitcoin price.Credit:Getty
The world’s largest cryptocurrency advanced as much as 19 per cent to trade around $US39,944 ($51,525) following the tweets. It has slumped to as low as $US31,132 on Sunday.
The latest was at least the fourth tweet by Musk that has sent bitcoin prices running one way or another in the past two weeks. The volatility,almost unprecedented in an asset known for its wild swings,has raised concern among Wall Street veterans and regulators alike that bitcoin might not be ready for the prime time its backers envision.
“If the market continues to see wild swings based on Elon Musk tweets,it’s going to be a big setback for this asset class. The fact that it sees such wild swings to the tweets from one person takes away the legitimacy of the asset class,” said Matt Maley,chief market strategist for Miller Tabak + Co.
A spokesperson from Galaxy confirmed that a company mining representative participated in the call. Hut 8 Mining tweeted that it also was on the call,and would be part of an effort to “educate the market that sustainable mining is possible and a priority.”
The timing is conspicuous. Two weeks ago,Musk roiled the crypto world when he said Tesla wouldn’t accept bitcoin for cars because of its energy-intensive proof-of-transaction process. While the creation of a mining industry council might standardise energy-usage reporting,it will take years for many of the largest miners to recalibrate where they source their energy.
Pledges to make the industry more green picked up since Musk’s tweet,with several miners joining the Crypto Climate Accord,a private-sector initiative to decarbonise the crypto industry by 2030. The group was inspired by the Paris Climate Agreement.