Further stray comments by Elon Musk are having an impact on how people see Bitcoin as the coin’s value stabilizes around the midpoint of a stratospheric peak, following wild rally activity in past weeks.
Not too long ago, Bitcoin was pushing $10,000 per coin. Just days ago, it was up to $40,000, and now it seems to be slowly congealing around a $35,000 mark.
Coindesk reports today that Musk, who is credited with some portion of motivation for the Bitcoin rally, is clarifying that he would have liked to be on board years ago.
“I should have bought [Bitcoin] eight years ago,” Musk said recently, according to coverage by Tanzeel Akhtar. “I do at this point think Bitcoin is a good thing. I am a supporter.”
What Musk didn’t provide is any specifics on his investment strategy or intended positions. However, in order to move markets, he didn’t really need to. Musk’s impact as someone who can easily put his thumb on the scale is signified by his offhand involvement in the recent rally around Gamestop. Yes, it was a battle between rank-and-file investors and hedge fund managers. But many believe that online comments by Musk further buttressed Gamestop’s positive action to where it now sits highly valued above any type of achievable future revenue projections.
Musk’s singular power worries some traditional market analysts. It’s one thing to single-handedly pioneer companies like SpaceX and Tesla that innovate in unprecedented ways. That’s just good old industry pioneering. It’s another thing to preside over one of the single most explosive stocks in the past two years, and also be credited with starting two other rallies profoundly outside of one’s own jurisdiction.
Keep in mind, Tesla’s stock now sits above $800 per share.
How many of our big stock winners today are resting on their actual production value, and how much of their value is created by a South African entrepreneur who has captivated the hearts and souls of the market?
To so many, TSLA is and has been a buy. Now, news that the electric car company has opened up the Chinese market is seen as a harbinger of future stock increases by some investors. But under the surface lies the age-old edict: past gains do not indicate future results!
