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Although Tesla’s CEO Elon Musk actually withdrew from the bitcoin market, experts are convinced that the long-term market impact will be minimal.
Musk’s investment in the Bitcoin market is about $1.5 billion. In the meantime, it is expected to reach up to $2.5 billion in value due to rising prices.
However, this is a’new blood’ compared to the Bitcoin market cap. Bitcoin’s market cap is about $1 trillion.
On the 13th (local time), when Musk said that bitcoin was a return horn and that instead of canceling the bitcoin payment, it was collaborating with the Dogecoin development team to improve transaction efficiency.
As of 1 p.m. on the 14th (Korean time), on CoinMarketCap, a global cryptocurrency (virtual currency) market relay site, Bitcoin is recording $49,477, down 2.88% from 24 hours ago. In comparison, Dogecoin is trading at 49.42 cents, up 12.01%.
However, such an impact is expected to stop in the short term.
This is because, as mentioned above, Musk’s holdings are’joint hemostasis’ compared to the total market cap.
And even more important than this is that the forces that lead the recent cryptocurrency market are not ants (individual investors), but institutions. Bloomberg News reported on the 12th that institutional investment funds that have entered the cryptocurrency market in the last four weeks have reached an all-time high.
The general public thinks that ants are leading the cryptocurrency market recently, but in fact, the institution is leading it.
However, the most preferred cryptocurrency for institutional investors is Bitcoin. Bitcoin is the first cryptocurrency and has a representative character and has less volatility than altcoins (coins other than Bitcoin). In addition, by operating without major accidents for a long period of time, the network has proven itself to be safe.
Institutions value safety as much as revenue. This is a sharp contrast to the risk-taking and high-margin ants.
Recently, ants are focusing on altcoins. Since Bitcoin has already risen too much in price, the barrier to entry has risen, so it is turning to altcoins that can generate high profits, although they are dangerous.
So, even if Musk withdrew from the bitcoin market, the long-term impact will be negligible, experts believe.
On the previous day, Musk announced that it would stop bitcoin payments while talking about the environment, and today announced that it is working with the Dogecoin development team to improve efficiency, and declared a de facto withdrawal from the bitcoin market.