Why did Tesla saying they would accept payment in bitcoin move the price so much anyway? Surely it was only ever going to be used in a very small fraction of Tesla’s sales. And Tesla’s sales only represent a very small fraction of the total number of bitcoin transactions.
Were bitcoin speculators behaving rationally when they bought and sold on this news? And if not, don’t they deserve the majority of the blame here?
Perception...
And also, who says speculators behave rationally?
It is rational to expect that a "bad news" might take the price down because irrational speculators would sell, therefore it is rational to be irrational, and sell.
Were bitcoin speculators behaving rationally when they bought and sold on this news? And if not, don’t they deserve the majority of the blame here?