Elon Musk is at it again — this time, with blockchain stocks.
The self-proclaimed “Technoking” and his “Master of Coin” has continued to tweet value into various cryptocurrencies and blockchain stocks. Indeed, as Sarah Smith recently pointed out for InvestorPlace, Musk was able to tweet $38 billion of market capitalization back into Bitcoin (CCC:BTC-USD) yesterday. With a single tweet.
These moves to pump up the crypto world follow otherwise bearish tweets from Musk on the topic. On May 12, Musk may have single-handedly broken the crypto markets — and the hearts of crypto investors and Tesla (NASDAQ:TSLA) enthusiasts — by announcing Bitcoin would no longer be accepted as payment for Tesla vehicles.
Well, Musk appears to have recognized the hypocrisy of being an eco-friendly, forward-thinking individual and supporting a network with carbon emissions larger than small countries.
However, today, it appears everything has changed. Let’s dive into what’s driving blockchain stocks higher today.
Blockchain Stocks Soaring on Elon Musk Reversal
After providing what appeared to be a death blow to the crypto world via his views on Bitcoin mining, Musk has since changed his tone.
In a recent series of tweets, Musk has attempted to backtrack his previous comments. Perhaps he has finally realized his unofficial role as the leader of the blockchain investor base. Or perhaps he’s trying to salvage his massive investment in Bitcoin.
Whatever the case, Michael Saylor, founder of MicroStrategy (NASDAQ:MSTR), and Elon Musk both tweeted yesterday that leading Bitcoin miners in North America have agreed to form a Bitcoin Mining Council. The purpose of this council? To “promote energy usage transparency & accelerate sustainability initiatives worldwide.”
Indeed, it appears the market is following Musk’s lead. When he’s bullish, the markets are green, and vice-versa. The extent to which cryptocurrencies and blockchain stocks trade as a function of sentiment is clear. Accordingly, it’s a sector investors should be very careful with right now.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.