I studied economics in university though I am not an expert but can reasonably understand economics and markets.
"Swish" and there is a fire when Harry Potter swirls his wand in a Harry Potter movie - that is magic, Crypto currency market is now something similar to it now "Swish" a tweet and crypto currency moves up or down defining all laws of economics (though wondering where is economics in Crypto currency after all!)
Elon Musk the founder of Tesla is using his magic wand popularly known as Twitter to move up and down the price of Crypto currency.
There had been series of tweets from Elon Mush since 2020 which influenced prices of Crypto currencies & more so in 2021. In February 2021 Musk tweeted that Tesla has $1.5 Billion worth of Crypto currency and the company would soon accept Bitcoins as payment for Tesla cars this sent Crypto currencies values soaring more than 10%.
Then came the twist in the tweet in May 2021 Elon Musk tweeted that Tesla will not accept Bit coins for payment towards Tesla citing environmental impact due to mining of Crypto currencies. This sent Bitcoins prices head down from $ 55,000 to $ 48,000 within 24 hours and went to lows of $ 34,000.
Soon after this tweet another couple of tweets came out from Musk "Tesla has not sold any Bitcoin" another acknowledging Bitcoin miners plan to switch to renewable energy for mining Bitcoins - these tweets again picked up Bitcoin prices to around $ 43,000.
Currently Bitcoin is trading around $ 38,000
Cryto currencies are here to stay in the financial system, they do not fall within any economic definition and will continue to be influenced by multiple factors especially social factors. Unless until Governments of the world sit down and bring in a set of regulations Cryto currency will behave similar to this and create headlines whenever there a sensational news
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