The CEO of Tesla, Elon Musk, proved that he could move the entire crypto market with a single tweet.
The cycle of “confusion market” started on Sunday when a pseudonym Twitter handle named @CryptoWhale tweeted that
Bitcoiners are going to slap themselves next quarter when they find out Tesla dumped the rest of their #Bitcoin holdings. With the amount of hate @elonmusk is getting, I wouldn’t blame him…
Musk reacted to that tweet with a single word post saying, “Indeed.” This single-word tweet was enough to make the whole crypto market go ballistic, and Bitcoin sank 10% at the end of the week, hitting a new three-months low. That was the most minimal level since February 8 and 35% below the ATH.
However, bitcoin then bounced back fairly when Musk tweeted: “To clarify speculation, Tesla has not sold any Bitcoin.” The Tesla CEO sent Bitcoin revitalizing back above $45,000 on Monday.
To respond to this confusion market, Antoni Trenchev (co-founder of Nexo) said that “He has to wake up to the reality that with his following, even single-worded tweets can move markets,” and in reality, this is happening.
Musk’s inclusion in crypto has been a significant driver of the buyer market this year, and Tesla’s divulgence of a $1.5 billion stake carried authenticity to cryptocurrency. In April, Tesla’s profit report showed the organization had sold 10% of its Bitcoin property. Musk even tweeted that Tesla was trying “to prove liquidity of Bitcoin as an alternative to holding cash on balance sheet.”
However, the biggest supporter of Bitcoin seemed to have walked out on it with his tweet stating Tesla would stop accepting bitcoin as payment for its electric cars, saying the token’s insane energy use was damaging to the climate. Musk’s declaration stunned crypto fans and started a more extensive sell-off in cryptocurrencies, including Ether, XRP.
Galaxy Digital Report
Even though the environmental problem seems to be genuine from Musks side to abandon Bitcoin, yet many investors are not buying his story as the recent report from Galaxy Digital showed that the traditional banking system consumes much more energy than the Bitcoin network.
The report assesses Bitcoins yearly power utilization to remain at 113.89 (TWh) per hour, including energy for miner demand, miner power consumption, pool power consumption and node power consumption. This sum is, at any rate, multiple times lower than the cumulative energy devoured by the banking system (263.72 TWh) and the gold industry (240.61 TWh) on a yearly premise.
Musk’s move prodded wide-scale analysis from the crypto community, with some expressing that SpaceX would need to change its rockets to “more sustainable energy” to not “resemble an ignorant big imposter.”
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