Hey Mr. Musk, Can You Please Give Us A Break?

Last week, I wrote how Elon Musk’s tweets interrupted one of my first post-pandemic dinners with friends.That was when he announced that Tesla (TSLA) would no longer be accepting bitcoin for the purchase of the company’s cars because of environmental concerns.My take was more cynical, saying that the real reason was that the company either realized or was warned that accepting bitcoin for major purchases creates anti-money-laundering concerns. To be fair, though, I couldn’t get too perturbed about getting an alert during dinner. The alert was shortly after normal business hours on the West Coast, so the timing was understandable. 

Bitcoin, Currency, Technology, Money, Cryptocurrency

mage Source: Pexels

It’s the weekend tweets that bug me more.  Each of the past two weekends brought Musk tweets that required my paying attention to cryptocurrency markets.  I have spent decades getting used to the rhythm of the global markets.I began my career trading Australian stocks (among others), so I have been attuned to checking markets on Sunday nights (New York time) ever since. But I have always liked being able to tune out of market chatter from Friday afternoons after the special exercise and assignment deadline through Sunday evenings.It provided a necessary mental break after a stressful week.

Then bitcoin came along, bringing with it 24/7 trading.Oh, great.We have seen several significant weekend drops in bitcoin over the past few months.These falls came even during the midst of a staggering rally that saw bitcoin rally over fourfold in about 6 months.  I have posited that liquidity shrinks over the weekend, thus allowing moves to be magnified.I have also suggested that while the ability to trade cryptocurrencies without a break would be appealing to a generation raised on multi-player video games, it is detrimental to its acceptance as an investment.

To be fair, I expected some sort of Twitter (TWTR) frenzy two weekends ago.Elon Musk was hosting SNL and was widely expected to make some sort of comment on Dogecoin or Bitcoin.That was what we call a “known unknown”. His appearance on live television was widely anticipated, so it was rational for crypto traders to approach the show like equity traders do for a company’s earnings.We know that there is likely to be market moving news, but we don’t know what it will be.After SNL, Dogecoin bore the brunt of the damage and subsequent commentary by Musk. Dogecoin rallied sharply in advance of SNL, Musk joked about it, the coin fell sharply, then there were tweets about accepting Dogecoin as payment for a payload on a SpaceX flight that eased the losses. We knew something was likely to transpire, so that seemed like at least a version of business as usual.

1 2
View single page >> |

Disclosure: BITCOIN FUTURES

Trading in Bitcoin futures is especially risky and is only for clients with a high risk tolerance and the financial ability to sustain losses. More information ...

more
How did you like this article? Let us know so we can better customize your reading experience.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.