The most famous cryptocurrency, bitcoin, traded in Asia on Monday, fell to its lowest level in three months, then began to drift again. Investors are selling cryptocurrencies in response to Sunday’s tweet by Tesla boss Elon Musk, who may indicate that the carmaker is considering selling its bitcoins. Subsequently, however, Musk refuted.
In Asian trading, bitcoin fell to $ 42,185 (almost $ 885,000), the lowest since Feb. 8, losing nine percent. Another of the currencies, ether, fell by eight percent and dogecoin by almost seven percent. Bitcoin subsequently stabilized in response to Musk’s announcement that Tesla had not sold its bitcoins. The price rose above $ 44,000.
Musk has in the past supported the cryptocurrency market with his enthusiasm for these assets. These reports fundamentally helped bitcoin to an absolute price record, which it reached in mid-April this year, when it sold for almost $ 65,000, in terms of Czech currency for more than 1.4 million crowns.
Lately, however, his enthusiasm for bitcoins seems to have waned, but he is interested in dogecoins, a kind of parody of bitcoins. His changes of opinion are also beginning to frighten long-term cryptocurrency traders. Compared to its maximum, bitcoin has lost about half a million crowns in value this morning.
Last week, Musk said Tesla would stop accepting bitcoins when paying for its electric cars. He cited environmental concerns as a reason, because processing transactions with these currencies consumes a huge amount of energy. On Sunday, he suggested that Tesla may have already sold bitcoins that he had previously bought.
The almost fourteen percent decrease, in terms of Czech currency by about 140 thousand crowns, was caused by a single word, “Indeed”. Musk used it when he responded to one of the tweets on Sunday.
In response to an unverified owner’s Twitter account @CryptoWhale, who said that Tesla sold her bitcoins, but also that a wave of hatred had fallen on Musk, Musk responded with the word “really”. But it is not clear whether he confirmed the sale or whether he faced hatred.
Last week, Musk said Tesla would not sell its bitcoons, but the cryptocurrency fell by almost a quarter due to Tesla not accepting bitcoins when paying for its cars.
On Monday morning, however, Musk came up with another groundbreaking tweet, in which he assured that Tesla had not sold any bitcoins. The price of the cryptocurrency immediately soared to the price of more than 45 thousand dollars, so it added over 50 thousand crowns in crowns. “For CryptoCommunity, this Muskek tweet is a relief, but one cannot help but notice how enormously the price of bitcoin depends on the subjective opinions and decisions of one particular person, which is not a welcome situation for a regular investor,” said Trinity Bank chief economist Lukáš Kovanda.
Dogecoin also had not yet fully recovered from the slump caused by Musk’s statement, in which he called him a scam, although before that he had significantly increased the price of this cryptocurrency. Since the beginning of this year, dogecoin has risen roughly a hundredfold. Ethereum quadrupled and bitcoin by 45 percent, Reuters reported.
Last week, it was also revealed that Tesla is applying for inclusion in the US equivalent of the emission allowance program. The Biden administration is now expanding the program most significantly in its entire history – it was established during the reign of George Bush Jr. Once incorporated, Tesla could raise money from companies in the traditional fossil fuel industry, which would have to buy permits from representatives of “clean energy”, potentially including Tesla.
According to Kovanda, Musk obviously wants to tilt the authorities with his visible resentment at bitcoin. “This explains his turn to Tesla’s use of bitcoin in payments. It is speculated that if Donald Trump won last year’s US presidential election, Musk would now continue to accumulate bitcoins. Trump would have such a massive economic support program.” and renewables, so it wouldn’t be worth it for Musk to be so upset about bitcoin, “the economist believes.
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