What just happened? Elon Musk is at it again. After crashing the price of Bitcoin last week when he announced Tesla would no longer accept the crypto as payment, BTC sunk to a 3-month low following Musk’s hint that the EV giant is considering or may already have sold some of its Bitcoin. He’s now confirmed that his company has not sold any of its holdings, but the price remains below $46,000.
Bitcoin’s booming price hit an all-time high in February when Tesla announced it had invested $1.5 billion in the crypto and would soon be accepting it as payment for its products. But Musk reversed the latter decision last week, citing the environmental concerns surrounding Bitcoin mining. The move saw BTC’s price plummet 17%, though it did rebound slightly.
Musk dealt another blow to Bitcoin over the weekend when he appeared to agree with a tweet that implied Tesla would sell or may already have sold off its bitcoin holdings.
User @CryptoWhale tweeted: “Bitcoiners are going to slap themselves next quarter when they find out Tesla dumped the rest of their Bitcoin holdings. With the amount of hate [Elon Musk] is getting, I wouldn’t blame him.” To which Musk replied, “Indeed.”
Musk just tweeted that Tesla has not sold its Bitcoin holdings, steadying its price. At the time of writing, BTC still remains beneath $46,000.
Tesla revealed in March that it had sold 10% of its Bitcoin holdings. And while that did affect the crypto’s price, the impact was softened by Musk’s assurance that the sale was to demonstrate its “liquidity.” The world’s second-richest man also said he hadn’t sold any of his personal Bitcoin holdings, though how much he owns is unclear.
Ideally, Doge speeds up block time 10X, increases block size 10X & drops fee 100X. Then it wins hands down.
— Elon Musk (@elonmusk) May 16, 2021
Musk’s actions have been affecting Dogecoin’s value, too. He sent the price tumbling 35% last week when he described it as a “hustle” during his appearance on Saturday Night Live, though he helped Doge make back some of the losses by proposing an upgrade to its efficiency and tweeting a poll asking if Tesla should accept it as payment.