Elon Musk's 'breakup' tweet about Bitcoin sends it plunging 7%

Elon Musk’s ‘breakup’ tweet about Bitcoin sends it plunging 7% – as he is NOT scheduled to speak at crypto conference in Miami where Jack Dorsey and Ron Paul are headlining

  • Musk’s ‘breakup meme’ tweet on Thursday night sent Bitcoin plunging
  • Panicked investors took it to mean Tesla is selling off its Bitcoin reserves
  • Musk mocked their fury with another meme of a crying day trader
  • Meanwhile Miami hosted largest Bitcoin conference of the year
  • Jack Dorsey announced Square will develop a hardware wallet for crypto
  • Musk was not on the list of speakers, and it was unclear whether he was invited
  • Animosity toward Musk was on full display among conference attendees 

Elon Musk has sent Bitcoin plunging by tweeting a ‘breakup’ meme, as the world’s largest conference on the cryptocurrency gets underway in Miami without him.

On Thursday night, Musk tweeted a ‘heartbreak’ emoji with the word ‘Bitcoin’ alongside a meme about a couple breaking up over the boyfriend’s love for Linkin Park lyrics.

Panicked amateur investors speculated that the meme amounted to a disclosure that Tesla would liquidate the massive reserve of Bitcoin that it acquired for $1.3 billion, sparking a sell-off that sent Bitcoin down as much as 7 percent on the day.

Musk then mocked furious investors, posting a meme depicting a day trader crying as his portfolio plunged in value and replying ‘nice’ to an illustration of rival crypto Dogecoin. It was unclear what, if anything, any of the tweets meant.

Bitcoin, seen in a one-week chart, plunged after Elon Musk’s ‘breakup’ tweet

Musk seemed to be trolling furious investors with his follow-up tweet on Thursday

Musk was not on the list of invited speakers at a major Bitcoin conference in Miami, where Jack Dorsey (above) made headlines on Friday

Meanwhile in Miami on Friday, Musk was not on the list of invited speakers for what was billed as the world’s largest Bitcoin conference ever, and hostility toward the Tesla CEO was on full display.

Some conference attendees were spotted wearing T-shirts reading ‘F**k Elon Musk,’ and around town, someone had paid for billboards reading ‘Stick to Space, Elon.’

Promoters of Bitcoin seem to have grown frustrated with Musk, who appears to delight in moving markets with jokes on Twitter.

As Musk’s jokes wear thin, his ability to influence cryptocurrency prices has waned. As of Friday afternoon, Bitcoin had pared losses and stood at $36,903, down 4 percent on the day and up about 6 percent from a week ago.

At the Miami conference, being held over the weekend at the Mana Wynwood Convention Center, Jack Dorsey made headlines and burnished his credentials as a serious backer of Bitcoin.

Dorsey, the CEO of Twitter as well as the payment company Square, announced that Square is considering creating a non-custodial hardware wallet for Bitcoin

The logo of the crypto-currency conference Bitcoin 2021 Convention hangs above people buying drinks at a stand at the Mana Convention Center in Miami, Florida, on Friday

Former U.S. Rep. Ron Paul (R-TX) speaks at the Bitcoin 2021 Convention. ‘I don’t understand everything about Bitcoin, but I do understand liberty,’ said Paul, 85

Boxer Floyd Mayweather was cheered as he walked on stage, but met by boos after he speculated: ‘I believe there’s gonna be another cryptocurrency just as large as Bitcoin’

Bitcoin wallets can be stored offline or online with cryptocurrency exchanges, venues where Bitcoin can be bought and sold for traditional currencies or other virtual coins.

With a non-custodial wallet, you have sole control of your private keys, which in turn control your cryptocurrency and prove the funds are yours. 

With a custodial wallet, another party controls your private keys. Most custodial wallets are internet-based exchange wallets.

‘We don’t want to compete with other hardware wallets out there,’ Dorsey said. ‘We just want to take it to the next level and get to 100 more million people, which have non-custodial solutions.’

As Bitcoin and other crypto-currencies have gained in popularity, many companies have emerged to serve a growing need to protect these assets from online theft.

‘If we do it, we would build it entirely in the open, from software to hardware design, and in collaboration with the community,’ said Dorsey.

People attend the Bitcoin 2021 Convention, at the Mana Convention Center on Friday

Bitcoin 2021 is the world’s largest-ever crypto-currency conference, with a sold-out crowd of 12,000 attendees and thousands more throughout Miami

People listen as Jack Dorsey creator, co-founder, and Chairman of Twitter and co-founder & CEO of Square is seen on a screen as he speaks during the Bitcoin 2021 Convention

Former Rep. Ron Paul, the staunch libertarian and father of Sen. Rand Paul, also appeared on stage in Miami on Friday.

‘I don’t understand everything about Bitcoin, but I do understand liberty,’ said Paul, 85, to an enthusiastic reception from the crowd.

Paul, a longtime critic of fractional reserve banking, spoke out against the Federal Reserve and argued that Bitcoin could pave the way for a new liberty-focused monetary policy. 

Former world welterweight champion Floyd Mayweather, who is scheduled to fight YouTuber Logan Paul on Sunday, also appeared at the conference.

Mayweather was met by boos after he appeared on stage wearing a shirt from a sponsor involved in the alternate cryptocurrency Ethereum, and speculated: ‘I believe there’s gonna be another cryptocurrency just as large as Bitcoin some day.’

Conference organizers were clear that the conference would be devoted to Bitcoin, not alternate coins, and the audience response to his remark was harsh. 

Critics accuse Musk of ‘trolling’ Bitcoin community with immature tweets 

Musk has been a major promoter of cryptocurrencies but has turned critical of Bitcoin since suspending Tesla plans to take it in payment for cars, owing to concerns about its energy use.

Tesla’s big position in Bitcoin and Musk’s large personal following set crypto markets on edge whenever he tweets.

Musk has previously said Tesla would not sell its Bitcoin, but his ‘breakup’ tweets on Thursday were enough to unsettle markets still fragile following May’s 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.

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

Musk’s tweets on cryptocurrency initially endeared him to the Bitcoin community, but now some accuse him of ‘trolling’ with his frequent outburst

Bitcoin is well off its peak but remains up 28% from the start of the year

‘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 in the wake of that decision and on news of renewed regulatory scrutiny in China.

Telsa stock has now fallen by a third since it announced a $1.5 billion Bitcoin purchase in February, and Bitcoin is more than 40 percent below April’s record peak of $64,895.22.

The second biggest cryptocurrency, Ether, which tends to move in tandem with Bitcoin, also sank on Friday.

Dogecoin, the cryptocurrency perhaps most sensitive to Musk’s opinions as he helped to turn the coin, started as a joke, into a multi-billion dollar market valuation, also fell by more than 10 percent but pared losses in the afternoon Friday. 

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