When Billionaires Tweet, FREE Markets Will Move

A lot of people act like Elon's ability to move the Bitcoin market with one tweet is a bad thing. It's not. It's actually an indication that Bitcoin is still a FREE market with heavy price discovery.

There will always be influential people in the world. When those influential people say things, the sheep WILL follow. This means that almost any asset with less than, say, a $10T market cap, will move a lot on the tweets of billionaires.

That's just how people think.

Let's contrast the Bitcoin market with the stock market, which, in its current form, is NOT a free market with price discovery. The Fed has essentially outlawed bear markets. Every time there's a market dip, the Fed extends lots of essentially interest free credit to big companies in order to correct the price, (via them buying their own stocks, among other things).

In trading circles, there's this idea of whether the Jerome Powell's comments resemble a "Hawk" or a "Dove." Here's what they basically refer to:

• Hawk: let the market drive interest rates up, allow bankruptcies, allow liquidations, allow reallocation of capital and labor
• Dove: force interest rates down, lots of low interest rate lending, bailouts, no liquidations, guarantee employment

Now here's the insight: The stock market is driven almost entirely by Jerome Powell's latest comments. When JPow has a press conference, if his comments aren't quite Doveish enough, the market tanks. When he clarifies later, it goes back up.

When the interest rate on the 10 year treasury note rises just a few tenths of a percentage point, the market tanks. When JPow comes in and assures us that the Fed will continue QE (or whatever they call it now) and prevent the recession, it recovers.

It's not even that JPow needs to say Hawkish things to move the market down. It's even the case that if he's simply not dove enough, there will be a small sell off to test the waters.

tl;dr - All this is to say, what you're seeing with Elon and market movement indicates that Bitcoin is a healthy free market with real price discovery. Free markets can be manipulated for the masses, but as long as you understand it, they can never take your Bitcoin or steal it through inflation.

The alternative is the clown world stock market we live in where the entire market lives or dies on each JPow press conference, and your savings are debased as they prop the whole thing up.