Rightly or wrongly, Elon Musk is considered one of the most influential personalities in the crypto ecosystem. The statements of the whimsical billionaire can alone cause cryptocurrency prices to rise or fall. It is therefore logical that his recent remarks, as to the fact that he “had never encouraged people to invest in cryptos” surprised many specialists in the sector.
These remarks were made by Elon Musk during a press conference organized by Bloomberg on Tuesday, June 21 as part of the economic forum held in Qatar. A simple sentence that did not go unnoticed, coming from an influential figure known for his interest in cryptos.
If Elon Musk has never openly called for buying cryptos, he has nevertheless often displayed his interest in blockchain technology.
Elon Musk’s love affair with cryptos is complicated. The boss of Tesla and SpaceX has regularly blown hot and cold on the issue. In February 2021, Tesla announced that it was investing $1.5 billion in bitcoin. An announcement that had boosted the course of this cryptocurrency.
The boss of Tesla had also confirmed that the famous brand of electric cars could accept Bitcoin as a means of payment, before doing an about-face in May, judging the creation of this cryptocurrency too polluting.
A crypto sector in crisis
Nothing is going right in the crypto ecosystem. Prices are plunging and bad news is piling up. Having become highly correlated to equity markets, cryptocurrencies are considered risky assets in the same way as technology stocks by institutional investors and fund managers.
As the crypto sector goes through an unprecedented crisis, many investors are turning against Elon Musk after suffering huge financial losses. This is the case of one from Keith Johnson, an investor who lost a lot of money betting on dogecoin. Feeling cheated, he is suing Elon Musk in US justice claiming $86 billion in damages, plus $172 billion in triple damages. That is a total of 258 billion dollars.
As for bitcoin, it continues to fall. Saturday, June 18, weighed down by investors’ lack of appetite for risk, it fell to 18,740 dollars, a fall of 9% compared to the previous day. This is its lowest level since December 13, 2020. Since its all-time high on November 10, 2021, at $68,991, the digital currency has lost more than 72% of its value.