Bitcoin fell Friday after Tesla CEO Elon Musk put out a cryptic tweet hinting at a breakup with the largest cryptocurrency.
- Musk tweeted a broken heart with the bitcoin logo and a picture showing a couple in the midst of a breakup during the Asian hours.
- The crypto community took it as a sign of the billionaire distancing himself from bitcoin, leading to price losses.
- Bitcoin fell nearly 7%, hitting lows under $36,500 and reversing Thursday’s rally to $39,200. Other cryptocurrencies including ether, cardano, polkadot and dogecoin followed suit, suffering relatively bigger losses.
- The pullback poured cold water over the optimism generated by the symmetrical-triangle breakout confirmed on Thursday.
- “The failed breakout is not a good sign,” Delta Exchange CEO Pankaj Balani said. “We could see deeper losses if the recent range is breached to the downside.”
- Bitcoin is currently down more than 40% from the record-high $64,801 reached on April 14.
- The cryptocurrency fell by 35% last month after Tesla delisted bitcoin as means of payment, citing environmental concerns. The move quashed hopes for widespread corporate adoption.
- Musk’s latest tweet may further amplify those fears.
- Data provided by Skew shows the options market is biased bearish, with long put trades accounting for 29% of the flows seen today and short call trades accounting for 30%.
- Investors typically buy puts and sell calls when the market is expected to drop.
