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Billionaire bitcoin bull Mike Novogratz says Elon Musk's tweets aren't helping crypto - he just likes the attention

Jun 17, 2021, 20:59 IST
Business Insider
Mike Novogratz and Elon Musk.REUTERS/Mike Blake/John Lamparski/Getty Images
  • Mike Novogratz said Elon Musk's eclectic tweets aren't good for cryptocurrencies.
  • "What are you doing? I don't think it's helpful," Novogratz said amusingly in a recent interview.
  • Musk's bitcoin craze may be why his company is going through something of a lull, Morgan Stanley recently said.

Elon Musk may be the entrepreneur of his generation, but his crypto-themed Twitter outbursts aren't good for other investors, billionaire Mike Novogratz said in a recent interview with YouTuber Logic.

The Galaxy Digital CEO described Musk as "smart and thoughtful," but said his often-eclectic tweets were "just not helpful for the crypto world."

"He likes the attention. He likes talking about CumRocket," Novogratz said, referring to the cryptocurrency that provides a marketplace for the adult content industry. "Come on, you run for the best companies in the world. What are you doing? I don't think it's helpful," he added.

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Musk's tweets have created quite a stir for mainstream cryptocurrencies including bitcoin and dogecoin, showing just how nascent the asset class is. The world's most popular digital asset got a boost by Tesla investing $1.5 billion in it back in February. But a lot of new retail investors tend to panic sell post his tweets, causing wild fluctuations in its price.

Some analysts expected his tweets to have less of an impact on the market after the entrance of institutional investors in the space, but so far it seems far from that point.

Morgan Stanley recently said Musk's bitcoin obsession may be why investors are less focused on his electric-vehicle maker's other involvements such as renewables, storage networking, and transportation. "Might Tesla-bitcoin fever may be telling us something about the lull in Tesla sentiment?" the bank's analysts said.

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Novogratz also spoke of how bitcoin's true value lies in the community of people around it, and that it would be worthless if no one believed in its potential.

Bitcoin was last trading 2% lower around $38,746 on Thursday. It is up 33% so far this year.

Read More: A CEO from a leading crypto miner details the 6 factors his company uses when doubling down on an investment - and shares 2 metrics you need on your radar

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