Musk breakup tweets bruise bitcoin By Reuters

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© Reuters. FILE PHOTO: Presentation of virtual currency Bitcoin is seen in front of a stock graph in this illustration taken on January 8, 2021. REUTERS / Dado Ruvic

By Tom Wilson and Tom Westbrook

LONDON / SINGAPORE (Reuters) -Bitcoin fell more than 7% on Friday, with tweets from Tesla (NASDAQ 🙂 boss Elon Musk, who appeared to lament a break with the cryptocurrency again moving markets.

Tesla’s large position in bitcoin and Musk’s large personal following set up crypto markets whenever he tweeted, and the price dropped after he posted “#Bitcoin” https://twitter.com/elonmusk/status/1400620080090730501, broken heart emoji and a picture of a couple discussing a breakup.

Musk went on to post a separating cartoon and responding “nicely” to an illustration of a rival crypto dogecoin posted by crypto exchange Coinbase. It was unclear what any of the tweets meant.

Musk previously said Tesla would not sell its bitcoin, but his tweets were enough to worry markets still fragile after the May crash.

“When Elon Musk tweets any crypto-related content, the market … expects a reaction,” said Nick Spanos, co-founder of ZAP Protocol, a crypto project in Switzerland.

The fall pushed it below its 20-day moving average to just $ 36,263, and took away some of the edge of its gains so far. It has grown 2% so far this week.

‘TROLLING THE COMMUNITY’?

Musk has been a major promoter of cryptocurrencies, but has criticized bitcoin since suspending Tesla plans to pay for it for cars, due to concerns about its energy.

Many crypto specialists have struggled to understand the motives behind their tweets.

“He’s trolling the community,” said Bobby Ong, co-founder of crypto data aggregator and analytics website CoinGecko.

Bitcoin and several other cryptocurrencies are still recovering from a crash last month after that decision and news of renewed regulatory scrutiny in China.

Telsa’s shares have now fallen by a third since it announced a $ 1.5 billion bitcoin purchase in February, and bitcoin is more than 40% below April’s record high, $ 64,895.22.

The second largest cryptocurrency, ether, which tends to move alongside bitcoin, also extended losses throughout the day. It fell 8% to $ 2,626 though for the second consecutive weekly gain.

Dogecoin, the cryptocurrency perhaps most sensitive to Musk’s views as he helped turn the currency started as a joke into a multi-billion dollar market valuation, also fell more than 10% to around $ 0.36 on Friday.

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