Musk's "Let's Hold On" Signal Sends Bitcoin Back to $40,000... JP Morgan Reports Institutional Selling

Proposal to Avoid Panic Selling
JPMorgan: "Institutions Are Selling Bitcoin and Buying Gold"

[Image source=Yonhap News]

[Asia Economy New York=Correspondent Baek Jong-min] Elon Musk, CEO of Tesla, has driven the price of Bitcoin. Although he previously contributed to the decline in Bitcoin's value, this time he sent a signal not to 'panic sell.'

On the morning of the 19th (local time), as Bitcoin attempted to rebound after falling to $30,000, Musk tweeted, "Tesla has diamond hands."

Musk expressed diamond and hands using emojis. Cryptocurrency specialized media Decrypt reported that Musk suggested holding on and not selling even if Bitcoin's price falls.

Musk's intervention was successful. Bitcoin, which was rebounding about 10% from the previous low of $30,000 before Musk's tweet, expanded its gains afterward and surged back into the $40,000 range. The increase from the low is about 30%.

Musk had previously supported Bitcoin and purchased $1.5 billion worth of Bitcoin through Tesla, but later made anti-Bitcoin remarks citing energy inefficiency.

In particular, he announced Tesla's suspension of Bitcoin payments and mentioned that Tesla might have sold all its Bitcoin, which caused significant backlash among Bitcoin investors.

After Musk's tweet, Tesla's stock price, which had fallen by 5%, narrowed its decline to about 3%. Cryptocurrency exchange Coinbase dropped 10% intraday but later fell 5% and is trading at that level. The Nasdaq index, which had fallen 1.5% along with Bitcoin, also narrowed its decline to 0.5%.

Meanwhile, regarding Bitcoin's extreme volatility on the day, CNBC reported that JP Morgan Chase mentioned that institutional investors are moving from Bitcoin back to gold, which seems to have influenced the market.

JP Morgan analyzed futures trading on the Chicago Mercantile Exchange (CME) and introduced that Bitcoin futures selling is increasing.

In fact, gold prices have recently continued to strengthen. Gold prices rose 0.6% to $1,880 on the day. Gold prices began to fall in March with the rise in U.S. Treasury yields and even entered the $1,600 range intraday but have since started to rebound and are aiming to re-enter the $1,900 range.

This content was produced with the assistance of AI translation services.