Elon Musk responds after lowering Bitcoin price with Tesla tweets

Elon Musk tweeted to “clear speculation” after his posts drove the price of Bitcoin and other cryptocurrencies down.

The Tesla boss had sent a tweet that some had read as an indication that he had sold his huge Bitcoin holdings.

“To clear speculation, Tesla didn’t sell bitcoin,” he replied to a person who pointed out the significant impact his contributions had on price.

Speculation began after Mr Musk posted a cryptic one-word tweet in response to a post about Tesla’s holdings.

“Bitcoiners will beat themselves in the next quarter when they find out that Tesla has dumped the rest of their Bitcoin holdings,” the CryptoWhale account had written. “With the amount of hatred Elon Musk gets, I wouldn’t blame him …”

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Mr Musk only wrote “Indeed” in response to the post. Many saw this as confirmation, or at least an indication, that the first part of the tweet was true and that Tesla had sold its Bitcoin holdings.

This caused the price of Bitcoin and other cryptocurrencies to fall further after an already negative week. Bitcoin lost 8.7 percent on the last day, and the overall crypto market lost 9 percent over the same period.

Tesla bought $ 1.5 billion in holdings of Bitcoin in February, although its value has been volatile due to the fluctuating price and at times it has made far more from its use than it does from its cars.

Not only does it mean that it holds a significant chunk of the bitcoin available, but it is also the best-known company investing in the cryptocurrency, which is helping to raise the price when the announcement was made.

The latest speculation comes after Mr Musk publicly berated Bitcoin and announced that Tesla will no longer accept it as a means of payment for cars. The decision was made out of fear of the cryptocurrency’s climate impact, he said, causing the price to drop.

But when he made that announcement, he had pledged that Tesla would keep the bitcoin holdings it already had.

“Tesla has suspended Bitcoin vehicle purchases,” the statement tweeted from Elon Musk’s account. “We are concerned about the rapidly increasing use of fossil fuels for bitcoin mining and transactions, especially coal, which has the worst emissions of any fuel.”

“Cryptocurrency is a good idea on many levels and we believe it has a bright future, but it cannot result in high costs for the environment.

“Tesla will not sell Bitcoin and we intend to use it for transactions once mining moves to more sustainable energy. We also look at other cryptocurrencies that are in use

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