Tesla CEO Elon Musk may have implied that the EV Maker is about to sell, or already sold, its Bitcoin holdings. The implications sent Bitcoin tumbling yet again, this time pushing prices down 8% to $44,000.
Did Tesla Dump Their Bitcoin Holdings?
The Twitter exchange happened last weekend when a Twitter use @cryptowhale mentioned Elon Musk in a tweet. “Bitcoiners are going to slap themselves next quarter when they find out Tesla dumped the rest of their holdings.
With the amount of hate @elonmusk is getting, I wouldn’t blame him…” he tweeted. Musk, an avid Twitter user, replied to the tweet with a single word. “Indeed,” he tweeted in reply.
Prior to this exchange, Musk announced that the company plans to hold on to and not sell their bitcoin holdings. In addition, they will use the cryptocurrency they currently hold when mining transactions run on sustainable energy.
Earlier, Musk championed the cause for cryptocurrencies. His tweets helped increase awareness and raise the value of currencies such as Bitcoin and Dogecoin.
In fact, Tesla submitted a Securities and Exchange Commission filing that it bought $1.5 billion worth of bitcoin. At the same time, it also announced it will start accepting cryptocurrency as payment for its vehicles and services.
During its first-quarter report, Tesla said it posted a $101 million gain from Bitcoin sales, helping the EV maker reach a record high in net profits.
Then, Tesla, last week announced they are suspending acceptance of Bitcoin. Musk said that the company is concerned about the increase of fossil fuels in bitcoin mining. As a result, the price of Bitcoin went down 5% immediately after Musk’s tweet.
Musk Now Favoring Dogecoin
Lately, Musk seemed to favor other cryptocurrencies apart from Bitcoin. Musk began talking more positively about Dogecoin, crypto that started as a joke.
Lately, Dogecoin is rising in value, pushed by Musk’s support. His aerospace venture, SpaceX, announced last week that the company’s “DOGE-1 mission to the Moon” will accept dogecoin payments. This helped boost the cryptocurrency’s price.
Not everybody appreciates Musk’s tweets. Fred Wilson, a founding partner of Union Square Ventures, reacted to Musk’s actions.
“He’s playing games. It is hard to take anyone who does that seriously. I’ve lost enormous respect for him over the last year because of it. A deep respect for what he does with his talents. Less for what he does with his tweets.”
Cryptocurrency Traders Remain Steadfast
Despite the barrage of Musk’s social media posts, many cryptocurrency traders remain steadfast. Crashes in Bitcoin and other tokens are nothing new for them.
Many believe in the power of digital coins should they succeed in transforming the financial system.
Emilie Choi, president, and chief operating officer of crypto exchange Coinbase Global Inc., commented on the crypto market’s wild ride.
“We’re looking at the long-term and so these blips, they don’t faze us,” “You’re looking for the long-term opportunity, and you kind of buckle up and go for it,” she said.
Watch the Bloomberg Markets and Finance video reporting that Elon Musk Tweet sends Dogecoin surging:
What do you think about Elon Musk’s continuous tweets about cryptocurrency? Does he know something we don’t?
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