Elon Musk recently caused crypto markets to go haywire. The Tesla CEO has now affirmed that his company has not sold any holdings in Bitcoin after he expressed his opinion.
His ‘cryptic’ tweet on Sunday resulted in a drastic drop in the price of Bitcoin, breaking the records for the lowest price since the end of February.
The crypto drama began when an anonymous user by the name of “CryptoWhale” tweeted: “Bitcoiners are going to slap themselves next quarter when they find out Tesla dumped the rest of their #bitcoin holdings.” If this in itself wasn’t enough, the user added how Elon Musk had been receiving immense hate and he “wouldn’t blame him” for choosing to follow through with this action.
In response to the user’s tweet, Musk had replied with a plain “Indeed” on his Twitter. As soon as the CEO confirmed the likelihood of the user’s predictions, Bitcoin suffered massive losses in the market and fell below $ 43,000., as noted by cryptocurrency tracker Coinbase. The coin had already plummeted on Sunday, but Musk’s tweet resulted in a further drastic fall.
After creating a stir in the market, Musk soon clarified how his company had not sold any Bitcoin. With his tweet going viral, the currency saw a 3.7 % jump in value – from $42,556 to nearly $44,138, according to Coinbase.
Musk’s new tweet had come a few weeks after he revealed Tesla would not accept Bitcoin as payment for their cars; a decision that had been made by the CEO himself before. He blamed the currency’s high environmental costs for the reversal of the decision.
“Cryptocurrency is a good idea on many levels and we believe it has a promising future,” Musk tweeted last week. However, he also went on to acknowledge that the value elicited through the future of Bitcoin cannot come at a cost to the environment.
Post Musk’s announcement, the value of bitcoin had plunged by a massive 12%. His sudden aversion to the coin came after months of Musk personally vouching for Bitcoin and other similar currencies, including the now-famous Dogecoin.
Despite Musk’s disapproval of Bitcoin as a mode of payment, the Tesla CEO has still said his company plans on using Bitcoin, once the mining process starts using cleaner and renewable energy sources. In addition, he also stated how the company is also looking into other coins as payment options.
At present, Elon Musk is the mind behind several high-ticket ventures including his space company SpaceX, which affirmed the use of Dogecoin as payment for missions.