A Twitter exchange between two of the United States’ prominent businesspeople has possibly added fuel to the bitcoin (BTC) rally this weekend, while the US announced a new coronavirus stimulus package and a regulatory crackdown. However, the rally ended on Monday morning (UTC time), with BTC dropping below USD 23,000. (Updated at 10:43 UTC to add the latest price data).
At the time of writing (10:42 UTC), BTC trades at USD 22,796, correcting lower from USD 24,000 reached earlier today. The price is down by almost 3% in a day, trimming its weekly gains to 19% in a week. It’s also up by 22% in a month and 217% in a year.
Tesla chief Elon Musk had a very active weekend on the social media platform, brewing a storm by tweeting, “Bitcoin is my safe word,” later writing:
“If you want to do your shareholders a USD 100 billion favor, convert the Tesla balance sheet from USD to BTC. Other firms on the S&P 500 [index] would follow your lead, and in time it would grow to become a USD 1 trillion favor.”
Tesla is due to start trading on the index today, and Musk duly responded by asking Saylor if “such large transactions” were “even possible.” Saylor replied by stating that he would be happy to share his “playbook” with the Tesla chief.
Whether or not the exchange did have an effect on BTC prices is unknown, but major news agencies like Reuters and Bloomberg appear to have helped its cause by reporting on the story.
@ercwl Hell, Elon even talking about it is good publicity. Let people gossip. The tragicomedy of life is incomplete without the chorus.
— Eric Lombrozo (@eric_lombrozo)
Meanwhile, other USA-related developments may also have had a ripple effect on the markets. The New York Times reported that the House of Congress has finally agreed on terms on a USD 900bn aid package that will see companies and individuals in the country receive more cash handouts from Washington. Individuals are in line to get USD 600.
On Twitter, some claimed that giving out cash to America’s middle classes while “continuing to pump billions into the markets via the Federal Reserve and Treasury” was misguided.
Others suggested that cash is “trash” and that BTC giveaways would be better than fiat payouts.
Podcaster and bitcoin advocate Anthony “Pomp” Pompliano, the Co-founder and Partner of Morgan Creek Digital Assets, also opined that “waiting for politicians to come save you” was a bad idea as the coronavirus pandemic continues to disrupt the global economy. He suggested that the United States government was wrong to assume that “the average American can survive a global pandemic and economic crisis on USD 1,800.”
Other crypto players took mocking aim at the withering status of fiats like the USD.
If you invested $1200 of Stimulus into #bitcoin several months ago it would be worth $4100 today (+242%)… https://t.co/Yoi5XHTYm2
— Parabolic George (@BitfuryGeorge)
“The ability for individuals to engage in digital peer-to-peer transactions is the foundation of the crypto economy. Undercutting that ability with last-minute rulemaking in the twilight days of an outgoing administration is not the way to make the type of long-lasting, responsive regulations that will support the safe growth of this industry in the United States.”
13/20 In the world of crypto assets, a report that includes a blockchain address essentially gives law enforcement… https://t.co/Sj5ngshgz4
— Jeremy Allaire (@jerallaire)
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