Elon Musk Issues Crypto Warning Following $2 Trillion Crash in Bitcoin, Ethereum, and Crypto Market
In a significant turn of events, the value of Bitcoin, Ethereum, and the broader crypto market has plummeted by $2 trillion since its peak at around $3 trillion in late 2021. This drastic crash has raised concerns among investors, despite the anticipation of a 3 billion user surge for Bitcoin.
Following the previous year’s FTX crypto exchange meltdown, which saw Bitcoin drop to approximately $16,000 per coin, the cryptocurrency made a remarkable recovery this year. Consequently, many optimistic predictions regarding the future price of Bitcoin emerged.
However, Elon Musk, who played a role in fueling the enormous 2021 bull run of Bitcoin and other cryptocurrencies, has now expressed his reluctance to recommend crypto investments. This comes despite the support from financial giant Goldman Sachs and tech powerhouse Microsoft for blockchain technology.
During a virtual appearance at the Wall Street Journal’s CEO Council Summit in London, Musk stated, “I’m not advising anyone to buy crypto or bet the farm on dogecoin. Maybe you should, but let me advise you that would be perhaps unwise.” Nevertheless, he expressed his continued fondness for dogecoin, a Bitcoin-inspired cryptocurrency initially created as a joke, praising its humor and dog-related theme.
In April, Musk stayed true to a promise he made before acquiring Twitter and temporarily boosted the Dogecoin price by 20% by changing the platform’s logo to the Shiba Inu dog breed, the symbol of Dogecoin. However, Dogecoin has suffered an even more severe decline than Bitcoin and Ethereum, currently down around 90% compared to their 60% price drops. Dogecoin reached its all-time high price just before Musk’s appearance on the U.S. comedy show Saturday Night Live in 2021, during the peak of Dogecoin mania.
While Musk has significantly reduced his cryptocurrency-related tweets since the crypto frenzy of 2021, he has occasionally expressed support for Dogecoin. In early 2021, he announced his intention to assist with upgrades that could transform it into the global currency and surpass Bitcoin. Additionally, Musk’s aerospace company SpaceX has allowed customers to purchase merchandise using Dogecoin. Tesla, his electric vehicle company, currently holds over 10,000 Bitcoins worth approximately $300 million at the present Bitcoin price, after selling most of its Bitcoin investment last year.