- Elon Musk, CEO of Tesla, tweeted his concerns regarding the environment and how Bitcoin mining is harmful.
- He announced that Tesla would not be selling Bitcoin until the mining transforms into more sustainable energy.
- The tweet shook the market, and almost $365.85 billion was wiped off.
The CEO of Tesla, Elon Musk, took his latest development regarding the car sales to Twitter and wrote that he is suspending all Bitcoin-related transactions as their mining is very harmful to the environment. On Thursday, when Musk tweeted, at around 06:06 AM, Singapore time, the cryptocurrency market was dealing around $2.43 trillion – data derived from CoinMarketCap.com.
By 8:45 AM, there was a steep fall, and the market stood around $2.06 trillion. A total of 365.85 billion whipped off within two and a half hours. Since the tweet went live, the cryptocurrency market witnessed a $165.75 billion loss of its value by 9:22 AM, Singapore time. In February, during the first quarter, Tesla announced purchasing $1.5 billion worth of Bitcoin and shared that they will be accepting Bitcoin as payments. Musk wrote that they intend to use cryptocurrencies for transactions as soon as the mining transitions become more environmentally friendly.
Tesla & Bitcoin pic.twitter.com/YSswJmVZhP
— Elon Musk (@elonmusk) May 12, 2021
Bitcoin market behavior after Elon Musk’s Tweet
Bitcoin plunged by almost 17% after Elon Musk announced on Twitter that Tesla would stop accepting Bitcoin as they are not environmentally friendly. Bitcoin ideally dominates the market. However, after the tweet went live, the price slipped from $54,819 to $45,700. However, the coin has recovered from the loss and is currently at $50,224. Presently, the market cap of Bitcoin is around $936,725,969,558.95.
Bitcoin price prediction for the intraday traders seems to be sluggish. The tweet was unexpected, especially from Elon Musk, as he has been a strong supporter of the coin. Tesla shares have also plunged after Elon Musk’s tweet. As per the latest update, TSLA sank by 4.42%. Almost 1.3% drop in the after-hours trading.
Tesla’s next step after suspending Bitcoin
Elon Musk mentioned in his tweet that he is open to other cryptocurrencies that use below 1% of Bitcoin’s energy traction. He added that he still feels cryptocurrency investment is a good idea and offers a promising future.
Tesla might accept Bitcoin in the coming period only if the mining switches to a more sustainable option. The change in the course of business will affect Tesla, but it looks like Elon’s Tweet will cause some change and revolutionize mining.
The future of Bitcoin and Tesla seems to end, but looking at Elon Musk’s affection for the coin, the same could revive again. Elon has played a key role in maximizing Bitcoin and Dogecoin via tweets in the recent past.