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BTC Price Tanks More Than 10% as Elon Musk Hints that Tesla May Sell All Its Bitcoin Holdings

UTC by Daria Rud · 3 min read
BTC Price Tanks More Than 10% as Elon Musk Hints that Tesla May Sell All Its Bitcoin Holdings
Photo: Depositphotos

There is also a speculation that Elon Musk has been involved in the classic pump and dump scheme of Bitcoin.

On Sunday, Tesla Inc (NASDAQ: TSLA) CEO Elon Musk posted a controversial tweet that gave a handle to think that Tesla is going to sell all the Bitcoin (BTC) it has. Following his response to the user @CryptoWhale, the price of Bitcoin dropped immediately, falling below $45,000 for the first time in almost three months.

As of the press moment, Bitcoin is trading at $43,305.46, according to CoinMarketCap. In the last 24 hours, it has plunged by 10.24%. The seven-day change is a 24.30% fall. Lately, Bitcoin has been losing positions, and Tesla has been infliencing this downward trend significantly.

For example, recently, we reported that Tesla suspended purchases with the cryptocurrency due to environmental concerns. In particular, Elon Musk is concerned about “rapidly increasing use of fossil fuels for bitcoin mining.” Besides, at that time, Musk said that Tesla was planning to hold rather than sell the BTC it already has. The company would be looking into other cryptocurrencies that require less energy for transactions. Following the news, Bitcoin price dropped by as much as 15%, below $50,000.

Will Tesla Headed by Elon Musk Hold Its Bitcon?

Back in February this year, Tesla revealed that it bought $1.5 billion worth of BTC and might invest even more in this coin or other cryptos. In addition, Tesla became the first S&P 500 company to purchase digital assets.However, later, Elon Musk revealed that Tesla sold $272 million worth of Bitcoin. Of this, the company netted a “positive impact” and net profit of $101 million. The sale trimmed the company’s holdings by 10%. And obviously, it provoked various rumours about Tesla’s intentions. Some said that Tesla would sell all its BTC holdings, and the recent Tweet of Elon Musk fuels these speculations. Others say that the company will keep all its crypto assets, adding more to its list.

Tesla CFO Zach Kirkhorn said the company continues to believe in the long-term value of Bitcoin. He said:

“We do believe long term in the value of bitcoin. It is our intent to hold what we have long term and continue to accumulate bitcoin from transactions from our customers as they purchase vehicles.”

Recently, Elon Musk asked his Twitter followers if they want to pay for Tesla cars in Dogecoin (DOGE). If the EV giant accepts the currency as payment for its cars, it will not be a surprise, as everybody knows about Elon Musk’s love to DOGE.

There is also a speculation that Elon Musk has been involved in the classic pump and dump scheme of Bitcoin. However, the second-richest man in the world has confirmed that he hasn’t sold any of his personal Bitcoin holdings and that this move was the company’s decision to prove the liquidity of Bitcoin.

Bitcoin News, Cryptocurrency news, News
Daria Rud
Author Daria Rud

Daria is an economic student interested in the development of modern technologies. She is eager to know as much as possible about cryptos as she believes they can change our view on finance and the world in general.

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