“US Government Should Keep Away from Bitcoin”, Says Elon Musk

29 Sep 2021 · 3rd Party Analysis

Colorful polygons with American capitol design. Elon Musk says government should not meddle in bitcoin regulation.


In Summary

  • Elon Musk says the US government should let bitcoin and cryptocurrencies thrive
  • The price of bitcoin gets a boost, trades above $42,000 per token

Elon Musk Opposes US Government Bitcoin Regulation

Tesla and SpaceX chief executive Elon Musk on Tuesday commented on the looming cryptocurrency market and the efforts from governments to regulate it. Mr. Musk said that the US government would do best if it decided to leave bitcoin alone.

“It is not possible to, I think, destroy crypto, but it is possible for governments to slow down its advancement,” Elon Musk said during his talk at the Code Conference in Beverly Hills, California. In response to a question from a reporter whether the US government should step in and regulate the crypto space, Mr. Musk was brief. “I would say, ‘Do nothing,”, he only commented.

Elon Musk, whose fortune is estimated to be north of $200bn, has been involved in the crypto space for quite a while. He has been committed to supporting the fast-developing industry even though his Twitter behavior has oftentimes created a storm in the crypto markets.

Bitcoin Rises Above $42,000 on Wednesday

He believes that bitcoin and digital assets will play an important role in the financial industry. They could reduce the “error and latency” in the outdated money systems, he said at the conference. “I wouldn’t say that I’m a massive cryptocurrency expert,” he also noted. “I think there’s some value in cryptocurrency, but I wouldn’t say it’s the second coming of the Messiah.”

Against that backdrop, the price of bitcoin remained well-bid late on Tuesday and early Wednesday. The flagship token climbed to levels above $42,400, after having slipped to a low of $40,700 a few hours earlier.

US Futures Stage a Rebound from Tuesday’s Selloff

In stocks today, US futures attempt to bounce back from yesterday’s steep losses. Futures contracts tied to the Dow Jones Industrial Average advanced about half a percent. S&P500 futures and Nasdaq futures were higher by the same amount also.

On Tuesday, the blue-chip Dow Jones slipped 570 points as troubles in Washington weighed on the session. The Nasdaq Composite lost 2.83% to log its worst day since March. The S&P500 fell 2%. The sharp selloff gathered momentum when Treasury Secretary Janet Yellen warned Congress the US may run out of cash by Oct. 18. To avoid a default, she said, lawmakers must raise the debt ceiling as soon as possible.

The Treasury Secretary was joined by Federal Reserve Chairman Jerome Powell for their testimonies before the US Senate. Fed’s Powell addressed rising uncertainties related to inflation expectations. He said that higher prices were more persistent than previously thought. However, he argued, inflation should come down in 2022.

Market Movers on Wednesday

Traders and investors today will be looking for opportunities across the financial markets during the ECB Forum panel. The event, focused on central banking, will conclude with a policy panel by several major central banks.

Central bank chiefs Andrew Bailey (BOE), Haruhiko Kuroda (BOJ), Christine Lagarde (ECB), and Jerome Powell (Fed) will participate in the final event that could be watched here.

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