The most powerful cryptocurrency Bitcoin traded below $45,000 after a tweet by Tesla CEO Elon Musk suggesting that the electric car maker may be considering or may have already sold their Bitcoin holdings.
Elon Musk responded to a tweet by an unverified Twitter account @CryptoWhale which stated, ” “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…”
Indeed— Elon Musk (@elonmusk) May 16, 2021
Musk replied, “Indeed.” without clarifying whether Tesla had sold off its Bitcoin holdings or that he simply agreed with the statement about facing criticism.
This response by the company CEO caused the price of Bitcoin to dip further by nearly 8 percent to around $44,000.
Elon Musk has been a big supporter of cryptocurrencies, helping rally the prices of these digital coins several times, especially after Tesla revealed that it bought $1.5 billion worth of bitcoin and would be accepting payments for vehicles using the crypto.
However, on May 12, Musk said Tesla will no longer be accepting Bitcoin for car purchases, citing environmental concerns since the cryptocurrency used a lot of energy to mine.
This decision had a massive impact on the price of Bitcoin and other cryptocurrencies.