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Charlie Bilello, founder and chief of Compound Capital Advisors has tweeted that Tesla shares are currently 36 percent down from the $883 peak reached on February 26.
Tesla is 36% down – is it because of BTC rejection?
Both the January peak and the current result of the gradual drop stand close to the dates when Elon Musk made Bitcoin announcements on his Twitter handle.
Bilello has tweeted a chart, showing that Tesla share price has broken below its 200-day MA for the first time since March last year (when the markets, including cryptocurrency one with Bitcoin as the frontrunner) collapsed – oil going below zero, Bitcoin losing fifty percent of its market value in twenty-four hours and collapsing below $4,000.
The Black Thursday was the aftermath of the Chinese pandemic that caused the economic recession around the world, followed by multiple lengthy lockdowns.
Since then however, Tesla started going up and on January 29, when Elon Musk tagged Bitcoin in his Twitter bio and then announced himself to be a Bitcoin supporter next day, Tesla hit $883 per share.
Since then the price has been declining and at the moment, TSLA is exchanging hands at $571.
Will Tesla change PoW Bitcoin for PoW DOGE?
On Thursday, Elon Musk tweeted that the company halts accepting Bitcoin as payments for its vehicles. This pushed Bitcoin down to the $47,000 level.
At the same time, some crypto fans started cancelling their orders for the company’s recent product – Cybertruck. Others are just calling for boycotting Tesla’s products.
The reason why Musk chose to stop accepting Bitcoin was due to oil and coal used for producing the energy used by miners and the large carbon footprint that they leave.
However, Musk recently ran a poll on Twitter, asking his followers if Tesla should start accepting Dogecoin, his favourite digital asset. This was before Tesla gave up accepting Bitcoin.
Curiously, both cryptocurrencies run on the Proof-of-Work consensus protocol and mining them requires fossil fuel usage.