In connection: Bitcoin’s surge in recent times owes a lot to Elon Musk. But all the profits it has made since Tesla publicly accepted the crypto has been wiped out by … Elon Musk. The price of BTC fell below $ 40,000 today for the first time since the EV maker announced its investment in the currency three months ago.
Tesla appeared to be Bitcoin’s biggest supporter earlier this year. The company’s $ 1.5 billion investment and announcement that it would accept crypto as payment for its products lifted the price to $ 44,000. In April, BTC hit a record high of nearly $ 65,000.
But Tesla’s relationship with Bitcoin has deteriorated recently. The price crashed last week when Musk reversed the decision to allow customers to pay for Tesla vehicles with the token due to environmental concerns about mining and wiped 17% off the price. He also suggested over the weekend that the company had sold its holdings, and while Musk later confirmed it hadn’t, the damage had already been done.
Bitcoin’s price fell to $ 38,500 a few hours ago, the lowest level since Tesla’s investment and a decrease of around 40% from last month’s high.
While Musk’s actions had a significant impact on the price of BTC, there were other factors behind the decline. As Bloomberg noted, this includes the People’s Bank of China “which reiterates that digital tokens cannot be used as a means of payment and highlighting the regulatory risk hanging over cryptocurrencies”.
Bitcoin isn’t the only crypto hit by Musk. Dogecoin price recently fell 35% after he described it as a “rush” during his appearance on Saturday Night Live. He helped Doge make up for some of the losses by suggesting improvements to his efficiency and tweeting a poll asking if Tesla should accept them as payment.
Industry insiders are not happy about the influence Musk is wielding. “I don’t feel comfortable when a person or a small business is able to manipulate the market. I think that’s where we are in cryptography right now, ”Michi Lumin, a Colorado-based developer who helps maintain Dogecoin, told Wired. “It’s not great, that’s for sure.”
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