Back to the list

Elon Musk Slashes Bitcoin Price, Some Accumulate Yet Many Face Dread!


coinpedia.org 13 May 2021 05:08, UTC
Reading time: ~2 m

Elon Musk More Volatile Than Bitcoin Price!

The bitcoin price was trading well close to $58k, despite a sideway trend, the price was poised to hit $60K soon. Yet the price declined initially when Ethereum co-founder Vitalik Buterin liquidated his SHIB and AKITA holdings for a donation. But the major crash appeared with the announcement from Tesla CEO Elon Musk. 

Musk, through a tweet, intimated the withdrawal of the purchase of Tesla cars using Bitcoin, as BTC mining is not environmentally friendly. However, the crash declined the price below $50K, yet offering a great buying opportunity. Many strong hands like Pomp, Mike Novogratz, and Lark Davis, etc bought at the dip. 

Me too.

— Mike Novogratz (@novogratz) May 13, 2021

I just bought some more #bitcoin, thanks Elon!

— Lark Davis (@TheCryptoLark) May 13, 2021

Yet, the agony of the retail traders was also seen as many Bitcoin supporters dumped Tesla car orders. Some traders also lost a big chunk of their investment within minutes, which may take long to recover. Elon Musk who assisted Dogecoin manipulation earlier, now did the same with Bitcoin, probably to increase the holdings. Moreover, Musk who believed BTC incentivizes renewable energy, now feels it is hazardous. 

But why did Elon Musk feel BTC mining might impact the environment when SpaceX also gives no oxygen in return?

Is the U.S. Renewable Credit Market, The Root Cause?

Tesla, which aims to provide a zero-emission car, had earlier led the crypto space on fire by accepting BTC as a mode of payments for their cars. They also said that bitcoin would not be converted into fiat, rather HOLD as an asset in Tesla’s balance sheet. 

In a recent update, Tesla is seeking an entry into the multi-billion dollar, U.S renewable credit market as per some reports. Biden’s administration is set to promote ‘zero-emission’, probably providing some benefits for the companies who qualify. No doubt, it is a move for the green environment, yet the timing of the announcement matters.

Oh what interesting and curious timing for Elon's green washed tweet as Reuters reports Tesla is trying to get into the green credit market…. pic.twitter.com/wu5MbL06mU

— Adam Cochran (@adamscochran) May 13, 2021

However, the entire crypto space is familiar with the ‘pump and dump’ concept, this may be the most hilarious one. The suspension of the bitcoin payments however may have good intentions, yet the crypto space slumped mercilessly. Bitcoin price will recover within stipulated time frame, yet it is the time for the retail traders not to fall into the ‘FUD trap’ of the strong hands. 


Back to the list