Elon Musk to Cathie Wood weigh in on cryptocurrencies after billions of dollars in market value are wiped out.
Crypto traders everywhere were watching Bitcoin’s price fall, fall, fall — down at one point as much as 30% on Wednesday — and many were wondering, What’s Elon thinking?
After the dominant cryptocurrency bounced from its nadir, the tweet finally came: Tesla has diamond hands — a reference to refusing to sell, even during turbulent times, written in emoji.
Tesla has 💎 🙌
— Elon Musk (@elonmusk) May 19, 2021
The tweet seemed to help Bitcoin pare more of its losses — it’s trading at about $38,000, off roughly 11% on the day. It was one of a number of supportive tweets and comments from wealthy crypto believers. Some of them have bet billions on the future of digital currency, though Musk in particular has been known to say when he thinks Bitcoin is overvalued.
Cathie Wood, the star fund manager and founder of ARK Investment Management LLC, said she still believes Bitcoin will hit $500,000.
“We go through soul-searching times like this and scrape the models, and, yes, our conviction is as high” as it has been, Wood said on Bloomberg TV.
Wood said it wasn’t clear how much more Bitcoin could drop, but she said the market was in a “capitulation phase.”
“You never know how low is low when a market gets very emotional,” she said. “We were looking at all the indicators this morning. They are all suggesting that we are in the capitulation phase, which is a really great time to buy, no matter what the asset is.”
Billionaire Mike Novogratz, the founder of cryptocurrency investment firm Galaxy Digital, has said Bitcoin would go to $100,000. On Wednesday, he tweeted a picture of a bunch of deflated basketballs that he said represented his crypto portfolio. “We will pump again once the selling is finished,” he said.
Crypto portfolio today. 😂. We will pump again once the selling is finished. pic.twitter.com/uGloPBwfne
— Mike Novogratz (@novogratz) May 19, 2021
Those who were selling weren’t particularly vocal about their moves.
Michael Sonnenshein, the chief executive officer of Grayscale Investments, which runs the largest crypto trust, tweeted a gif of a contestant on the American gameshow “Supermarket Sweep” pushing a shopping cart — implying that it’s time to buy.
pretty much sums it up pic.twitter.com/J7y9qC8o1z
— Michael Sonnenshein (@Sonnenshein) May 19, 2021
Christian Armbruester bought the dip.
“One has to be able to deal with the volatility when investing in cryptos,” said Armbruester, the founder of London-based Blu Family Office, which oversees about $700 million for his family and other wealthy investors. “All about size of bet. The opportunities are still there, as the digital asset space continues to grow.”