The value of Bitcoin for the first time in almost three months fell below $ 45 thousand after the founder of Tesla electric car manufacturer Elon Musk didn’t rule out the possibility that the company could sell or has already sold its Bitcoin assets.
The sharp drop in the price of Bitcoin began after the billionaire agreed with one of the users on Twitter, who said that in the next quarter, Bitcoin holders will be annoyed when they learn that Tesla got rid of its remaining Bitcoin assets (their value was previously estimated at $ 1,5 billion). “Indeed”, Musk replied.
A few hours later, Musk tried to dispel the rumors on Twitter and said that Tesla didn’t sell its Bitcoins. After this clarification, the cryptocurrency rate stabilized at $ 45 thousand.
According to analysts, on Sunday, May 16, Musk discussed for several hours with several Twitter users who criticized the change in his position on the cryptocurrency. As the businessman previously stated, the change in his position was caused by environmental problems associated with the consumption of electricity for making Bitcoin transactions.
On the same day, financial analysts announced that Musk abusing the trust of his audience and investors. In their opinion, the US Securities and Exchange Commission should pay attention to the actions of Elon Musk for a long time.
In February, Tesla reported to the SEC that it had invested $ 1.5 billion in Bitcoin in January. After Tesla’s announcement, Bitcoin has risen in price by 23%. The company said it has invested in the cryptocurrency to “further diversify and increase cash returns”.
Musk later called the company’s investment in Bitcoin “recklessness”. Noting that the company’s actions don’t directly reflect its real position on the cryptocurrency. Tesla added Bitcoin payment for its products in March. “Tesla will not convert Bitcoin received as payment into fiat currency”, Musk said.
In April, Tesla announced in financial statements that it had sold $ 272 million worth of cryptocurrency. Tesla CFO Zach Kirkhorn confirmed in a conference call that 10% of the company’s Bitcoins had been sold.
On May 13, Musk announced that Tesla would suspend accepting Bitcoin as a means of payment due to the unfriendly way of receiving this cryptocurrency. “We are concerned about the rapidly growing use of fossil fuels, especially coal, which has the worst emissions, for mining and Bitcoin operations”, he explained on Twitter. Musk also announced that Tesla will not sell its Bitcoins and use them for operations until cryptocurrency mining is done using “sustainable energy sources”.
Another manipulation by Elon Musk
Musk often accused of manipulating the cryptocurrency and Tesla stock market. You can make money both on falling rates and on growth.
One of Musk’s latest manipulations began in early May 2021. Tesla’s share price fell 15%, and Dogecoin’s virtual currency collapsed by more than 30% after Saturday, May 8. When the extravagant businessman once again made loud statements. A few hours later, the price of the cryptocurrency began to rise when Musk announced that SpaceX would accept Dogecoin as payment for space travel. A few days later, Musk announced that he would stop selling Tesla electric cars for Bitcoins. Bitcoin price immediately collapsed by 17% to $ 46.2 thousand. Over the course of this year, Musk has provoked both the rapid growth and decline of cryptocurrencies several times.