Bitcoin price drops again due to Elon Musk’s tweets

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TL;DR Breakdown Musk does not plan to sell his Bitcoin in the short term. Musk will continue to accept Dogecoin as a payment method. Elon Musk, Tesla CEO, again interferes with the Bitcoin price, giving it a new slash with his tweets. Musk clarifies that the company has not sold its BTC shares, following his … Read more

TL;DR Breakdown

  • Musk does not plan to sell his Bitcoin in the short term.
  • Musk will continue to accept Dogecoin as a payment method.

Elon Musk, Tesla CEO, again interferes with the Bitcoin price, giving it a new slash with his tweets. Musk clarifies that the company has not sold its BTC shares, following his suggestions about the cryptocurrency. The latest tweets from him had complained about BTC and its damage to the ecosystem.

One of the latest cryptocurrency dramas occurred on Sunday when a user named “CryptoWhale” spoke up. This person said that Bitcoiners would have trouble in the next half year when they discover that Musk and Tesla ditched their shares. CryptoWhale added that Musk may get out of the game because of the hatred and pressure generated by crypto traders.

With these tweets, the BTC capitalization was affected, falling to less than $43,000 in 24 hours. This low holding was 8%, as reported by Coinbase to its investors. BTC had lost value last Sunday with Musk and his speculation, but recent tweets sped up the process.

Musk clarifies Bitcoin holding

Bitcoin

Although the rumors about Musk and the sale of his BTC holding sounded convincing, the Tesla CEO says otherwise. Musk posted a tweet in which he says that the speculations about Tesla are false; he does not plan to sell his BTC in the short term.

The BTC price jumped back higher by 3.7%, going from $42,566 million to almost $44,138. This change in Bitcoin’s capitalization occurred less than five minutes after Musk’s tweet. But there was no immediate clarification from Tesla on his holdings in cryptocurrency.

These Musk posts came within days of the announcement that Tesla would not trade Bitcoins. Musk’s move to reverse payments with Bitcoins comes after learning of the environmental damage caused by mining him.

Elon Musk worries about the rapid increase in fuel used for mining with Bitcoins in the world. Although cryptocurrency has a high value, it is causing many environmental problems.

Latest Musk announcements on Bitcoin

Last week Musk warned that Tesla still plans to use BTC as a payment method, but for now, it is suspended. The company wants the cryptocurrency to use cleaner energy in its mining and thus preserve the environment. The Tesla project with Bitcoins is suspended for now, but it will have altcoins available as a payment method.

Musk says that Tesla is trying to use new cryptocurrencies as payment, which consume 1% of energy. The company would not use BTC until its mining process is restructured.

But Musk clarifies that his other company Space X will accept Dogecoin as a payment and investment method. This cryptocurrency can also buy cars at Tesla without problems.

Bitcoin is likely not to suffer from ups and downs again with Musk’s latest clarifications on the sale of its holdings. Shortly, Tesla may resume its BTC transactions causing another considerable increase in its market value.

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