The recent Bitcoin losses began after Elon Musk shows concern about the coin’s environmental impact.
The value of Bitcoin declined further after Elon Musk said that Tesla Inc (NASDAQ: TSLA) did not precisely deny that the company could sell its Bitcoin holdings. In a tweet posted on the 17th of May, Musk said that “Tesla has not sold any Bitcoin,” not stating whether the company will never sell its Bitcoin holdings or not. At press time, Bitcoin is down 8.32% to $44,881.
Tesla CEO’s comment came after a previous tweet that did not clearly state the car maker’s stand on its Bitcoin holdings. A crypto analyst named CryptoWhale on Twitter instituted that Tesla could sell off Bitcoin holdings. In the tweet posted on the 16th of May, the analyst said:
“Bitcoiners are going to slap themselves next quarter when they find out Tesla dumped the rest of their Bitcoin holdings.”
In response to the CryptoWhale, Musk said, “indeed.” Shortly after Musk’s unclear reply, Bitcoin fell about 3.7% to nearly $45,100. The king coin sank further to as low as $43,000 which is a 3-month low before a slight rebound.
The recent Bitcoin losses began after Elon Musk shows concern about the coin’s environmental impact. Musk said that Tesla is concerned with the “increasing use of fossil fuels for Bitcoin mining and transactions.” As a result, the EV company said it would suspend the acceptance of Bitcoin payments for any of its cars. The company had earlier said it would begin accepting BTC as payment in exchange for its products while revealing its Bitcoin investment in February.
While expressing worries over BTC’s environmental impact, Musk added that Tesla would not be selling any Bitcoin. He added that the company plans to use its BTC holdings for transactions when Bitcoin mining transits to more sustainable energy.
Musk is a known supporter of cryptocurrencies, as shown in several tweets on Bitcoin and Dogecoin. The CEO added the Bitcoin hashtag to his Twitter bio at a time, influencing a 20% gain to the top coin.
While influencing loss for Bitcoin, Musk has also been influencing a surge in the price of DOGE. Lately, DOGE has been improving, exceeding Bitcoin in its trading volume and becoming the 4th largest crypto by market cap.
Earlier this month, Musk’s aerospace manufacturer and space transportation services provider SpaceX said it will accept payment in DOGE to launch the “DOGE-1 mission to the Moon.”
DOGE is currently down 5.07% to $0.5051. According to CoinMarketCap, the coin has also dropped from its 4th position to the 5th largest cryptocurrency by market cap. Despite an increase of over 6% in its 24-hour trading volume, DOGE has lost nearly 3% in its market cap.
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Ibukun is a crypto/finance writer interested in passing relevant information, using non-complex words to reach all kinds of audience. Apart from writing, she likes to see movies, cook, and explore restaurants in the city of Lagos, where she resides.
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