Given the recent falling out that Elon Musk did have with the flagship cryptocurrency, a lot has changed among the crypto market given the attitude of the investors regarding Bitcoin, and it has also led to a decrease in Bitcoin’s price. The cryptocurrency did fall all the way from $55k to $42k, and given the last night, it is now trading below $39k and declining. This has made Bitcoin proponents very angry at Elon Musk for controlling the crypto market like he is doing despite the fact that it is taking place indirectly, but his tweets do have that kind of influence.
If you don’t know, the fallout is the result of Elon Musk engaging on Twitter a week ago, letting the world know that Tesla will be backing out on Bitcoin, featuring the cryptocurrency uses fossil fuels such as coal for mining which is putting a strain on the environment. Tesla did acquire $1.5 billion worth of BTC starting this very year, and now it is getting closer to dump all of it given the environmental issues.
Bitcoin’s Price has Taken a Positive Trend
This places Bitcoin’s price in a downward spiral. It doesn’t seem to be stopping anytime soon, traders are enraged, and the market capitalization of the leading digital currency is getting severely affected. Musk thought it is about time to do some damage control, so he tweeted something like ‘Tesla has diamond hands.’ Both the word diamond and hands were presented in the form of emoji.
This means as expert analytics and traders interpret it that Tesla might not dump its BTC stash, it is not like the pressure is too much to refrain from doing so, but Elon once again wants to be on the good side of Bitcoin proponents. This tweet did have a positive effect that forced bitcoin to rise around 6%, which is pretty great as the cryptocurrency is once again trading above the $40k approach. Another confirmation has come across by Tesla that it has canceled the dumping of Bitcoin stash of theirs and is not going to go through with it.