- The founder and CEO of Tesla, Elon Musk, has left another cryptic tweet about the crypto market.
- Elon approved that he keeps his Bitcoins personally, and Tesla just sold 10% of the holdings to prove the liquidity
- Following his question, “What does the future hodl?”, the crypto market has experienced a resurgence following the recent major dip.
- Could the tweet mean that Tesla, which made a $1.5 billion purchase of Bitcoin in February, is planning to hang on to its crypto for much longer?
- All the top 10 ranked cryptos are trading in the green, with the industry’s market cap back above $2 trillion.
No, you do not. I have not sold any of my Bitcoin. Tesla sold 10% of its holdings essentially to prove liquidity of Bitcoin as an alternative to holding cash on balance sheet.— Elon Musk (@elonmusk) April 26, 2021
2021 has seen Elon Musk dabble in the crypto space on multiple occasions. From backing Dogecoin, tweeting about Cardano, stating that holding Bitcoin is less dumb than cash, to Tesla’s groundbreaking Bitcoin purchase, Musk has been all over the crypto scene.
Once again, the billionaire inventor and Technoking of Tesla has got involved with the crypto industry. And, as with most of his previous interventions, his involvement has spurred positive price movements in the crypto market.
Elon Speaks, The Market Listens
Things are beginning to look positive following a long week painted mostly in red. The dip began with the incident in the Xinjiang region and was compounded by other news, including Turkey’s ban on cryptos, multiple warnings of a market correction, and possibly, fear of the new US capital gains tax.
The crypto market, which had lost more than $500 billion from its $2 trillion capitalization, experienced a resurgence after Musk’s Tweet. The uptrend started with Bitcoin and has spread throughout the market.
Market Reaction To The Tweet
Bitcoin has risen from $47,714 on Sunday to now trade at $54,777 (up by 4% over the last 24 hours). Every other one of the top 10 cryptocurrencies by market cap is currently enjoying the bullish momentum.
Uniswap (UNI) and Ripple (XRP) are the biggest gainers, up by 11% and 18%, respectively. UNI and XRP now trade at $39.55 and $1.39. Litecoin (LTC), Polkadot (DOT), Ethereum (ETH), and Cardano (ADA) are up by 4.64%, 5.31%, 3.7%, and 3.96%, respectively. Overall, the market cap of the crypto industry now sits just above $2 trillion.
On the Flipside
- While interest from investors may be increasing again, there are still those who hold negative opinions about crypto.
- Billionaire real-estate magnate and investor Sam Zell has stated that he remains “very sceptical, frankly, of Bitcoin.”
- In a TEDx talk, Wiktor Jaszczuk has argued that Bitcoin will ultimately fail.
What Does The Future Hodl?
The word hodl, an intentional misspelling of “hold,” used by Elon musk was invented in 2013. The popular crypto term is used to encourage traders and investors to resist the urge to sell their crypto holdings in response to market fluctuations.
Elon Musk is no stranger to cryptic quotes about cryptos. Just before the huge Tesla announcement, he made similar cryptic comments about Bitcoin in addition to his posts about Dogecoin.
After the Tesla announcement, Wedbush Securities analyst Daniel Ives noted that Tesla is “on a trajectory to make more from its Bitcoin investments than profits from selling its EV (electric vehicle) cars in all of 2020.”
Posting “What does the future hodl?” at a time when Bitcoin was hit with a major setback could mean that Tesla is willing to hang on to its Bitcoin holdings or perhaps even purchase more?