Tesla’s CEO, Elon Musk’s latest joke tweets stating Tesla’s “stock price is too high” raised a lot of controversies as TSLA stock price dipped minutes following the tweet. The connection between the self-labeled “CEO of Dogecoin” and the cryptocurrency community had to raise the conversation in the community.
Vitalik Reasons Musk’s Tweet, ‘Stock Markets Are a Joke’
Ethereum’s co-founder commented on Musk’s latest controversial tweets claiming Tesla’s boss may have succeeded in proving the stock market’s infallibilities and irrationality.
Eh, as far as I can tell he set out to prove that the stock markets are a joke and seems to have succeeded.
— vitalik.eth (@VitalikButerin) May 1, 2020
Tesla’s price has skyrocketed over 85% in 2020 alone, setting an all-time high of $917 on February 19, 2020. This saw the stock draw comparisons with Bitcoin (BTC), which is currently trading over 130% up from its starting price of ~$3,500 in January. Following the fantastic rise over the year, the tweet by Elon may be a classic case of argumentum ad absurdum showing in the stock market.
Elon’s tweet sent on 1st May sent TSLA shares tumbling more than 10% in a span of one hour as the markets reacted violently on the news.
Some analysts suggest that Elon’s tweet was a direct attack on the lockdown implemented in America, deliberately crashing the stock.
However, Musk may well be stating what a number of analysts have pointed out in the near past, as the stock set all-time highs, testing TSLA’s market’s resilience through the tweet.
“Bitcoin is never too low to sell”
Elon’s response to a comment on Bitcoin currently being extremely undervalued and his possible wish to purchase some BTC raised talk across the community. Binance, CEO, Changpeng Zhao, tweeted out a poll on the current pricing of Bitcoin (BTC) with an overwhelming number of participants believing BTC is undervalued at current prices of $8,800.
Is #btc price too low iyo?
— CZ Binance 🔶🔶🔶 (@cz_binance) May 1, 2020
However, EuroCapital CEO, Peter Schiff, heavily contradicted with the notion of Bitcoin being undervalued. Digging at the top currency, the gold bug stated BTC “never too low to sell” given its lack of intrinsic value.
“Too low for what? It’s certainly not too low to sell. Given Bitcoin’s lack of intrinsic value, it’s impossible for Bitcoin’s price to ever be too low, as any positive price is not low enough.” –Peter Schiff, Euro Capital CEO
BTC has outperformed gold year to date returns recording 35% gains to gold’s 11% over the past four months despite BTC undergoing one of its worst market crashes on March 12.
Do you think Bitcoin is overvalued at this moment?