May 21, 2021
Cryptocurrency volatility is not necessarily a bad thing – but it could be if your investment decisions are driven by the whims of celebrities like Elon Musk.
This is the word from Nigel Green, chief executive and founder of deVere Group, as bitcoin, the biggest cryptocurrency by market capitalisation, regains some ground after falling to a four-month low.
The price of bitcoin dropped by nearly 30% on Wednesday from the day’s early highs, before clawing back losses of 8%.
The dramatic swings come as China warned about the usefulness of digital currencies, which subsequently prompted a tweet by Tesla founder Elon Musk indicating that his electric vehicle firm was continuing to hold bitcoin (it bought $1,5-billion of it earlier this year) for the long term and would not be selling its position.