/https://specials-images.forbesimg.com/imageserve/60317c44e8c3c0d9b4e4898d/0x0.jpg "Tesla billionaire Elon Musk has issued a strong Bitcoin and Ethereum price warning as the Crypto market costs $ 2 billion dollars.")
Telsa billionaire Elon Musk, whose tweets about the meme-based cryptocurrency dogecoin are helping push it to a $ 10 billion valuation, warned that the price of bitcoin and etherum ‘looks high’.
The bitcoin price has risen by almost 500% over the past twelve months, partly due to Musk’s pro-bitcoin and cryptocurrency tweets and its electric car company Tesla adding bitcoin to its balance sheet – in the footsteps of US software company MicroStrategy .
MSTR
Elon Musk, CEO of both Tesla and SpaceX, has long been known as a cryptocurrency … [+]
AFP via Getty Images
The bitcoin price rose to $ 57,000 this week, bringing in a total value of more than $ 1 trillion, while ethereum, the second largest cryptocurrency, broke $ 2,000 per ether token for the first time, which giving a total value of $ 226 billion.
Musk made the bitcoin and ethereum price alert during a discussion on Twitter about the nature of money. Answer to gold investor and bitcoin skeptic Peter Schiff, Musk said: “Money is just data that enables us to avoid the inconvenience of bartering. This data, like all data, is subject to delays and errors. The system will evolve to what reduces both. It said bitcoin and ether do high. “
Earlier this week, Musk tried to waive Tesla’s $ 1.5 billion bitcoin purchase, which sharply increased the price of bitcoin when it was unveiled.
“Tesla’s actions do not directly reflect my opinion,” Musk said via Twitter in response to a Bloomberg interview with bitcoin and cryptocurrency exchange chief executive Binance.
“Having a little bit of bitcoin, which is simply a less stupid form of liquidity than cash, is adventurous enough for an S&P 500 company … If fiat currency has a negative real interest, only a fool does not look elsewhere. Bitcoin is almost like bs as a key currency. The key word is ‘almost’. “
Bitcoin’s mega 2021 rally has seen its price nearly double since the beginning of the year thanks to a combination of Wall Street institutional adoption, corporate interest and retailers.
“There are a number of reasons why bitcoin is soaring, but what stands out most is the trend that MicroStrategy started and made Tesla popular: institutional balance sheets in bitcoin to move against inflation,” said Nicholas Pelecanos, chief trading officer of the blockchain network NEM, said. said in an email comment.
The bitcoin price rises have accelerated over the past few weeks, helped higher by Elon Musk and Tesla.
Coinbase
Ethereum, meanwhile, has benefited from the rise of decentralized financing (DeFi) – using cryptocurrency technology to recreate traditional financial instruments such as interest, known as ‘returns’ and insurance. Many of the biggest DeFi projects are built on top of the ethereum blockchain, which raises the price of etherium as users flood the network.
“We have reached a turning point where people are questioning traditional monetary systems and realizing that there are better, fairer options,” said Jai Bifulco, chief executive of Kinesis, in the exchange of chain-based precious metals.
The broad bitcoin and cryptocurrency market, made up of thousands of digital tokens, is now worth a staggering $ 1.7 trillion – up from $ 800 billion at the beginning of January.