Tesla Stock Breaks Support, Bitcoin Price Tumbles After Elon Musk Halts Cryptocurrency Use For Vehicle Purchases

Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. Benzinga described Elonomics as a rebasing token which is an elastic supply smart contract that circulates its rise and fall in supply due to changes in token price. Founder and Chief Executive Elon Musk, often described as a Bitcoin influencer, jumped nearly 10 times late Tuesday night, according to a report by Benzinga. Elonomics as a rebasing token which is an elastic supply smart contract that circulates its rise and fall in supply due to changes in token price. “However, that’s no different to what we see in traditional assets when big name hedge-fund managers disclose their positions and those names move,” Kang said. Back in February, Tesla TSLA, +0.61%revealed that it acquired some $1.5 billion in bitcoin in a filing with the Securities and Exchange Commission. In a somewhat heated Twitter exchange, CEO Elon Musk threatened to add to his existing stock sell-offs. Highlighting the Spent Output Profit Ratio , Philip Swift, creator of data resource Look Into Bitcoin, contrasted the state of the current market with the “overheated” atmosphere of early 2021. In a move away from recent patterns, the pair failed to rally further into the start of trading on Wall Street, instead eyeing April’s old all-time high. It’s a familiar scenario to start the week as Bitcoin follows TSLA downhill after rallying overnight.

  • In March, Federal Reserve chairman Jerome Powell said he believes there could be value in the Fed developing its own digital currency, though he also said the bank has no plans to do that anytime soon.
  • High volatility remains a key characteristic of crypto trading, so anything can happen.
  • However, as cryptocurrency becomes more mainstream and the market hopefully calms, we’ll see how long that remains true.

Much, then, may hinge on whether bitcoin, created in 2009, can earn the kind of reputation for value protection that gold has developed over millennia. On Square’s Cash App alone, more than 3 million customers bought or sold bitcoin last year; in January, more than 1 million of them bought bitcoin for the first time. Tesla, Square, and MicroStrategy have committed a chunk of their companies’ cash holdings to bitcoin. Naresh Aggarwal of the Association of Corporate Treasurers in London told DealBook that doing so is more like “putting money on a horse race” than being prudent with cash reserves. At the time, Tesla noted that they were not selling their stake in Bitcoin and that they planned to resume taking Bitcoin payments once the network shows a higher mix of renewable energy. A white paper released last month by Square, the financial services company founded by Twitter CEO Jack Dorsey, argued that Bitcoin mining could actually encourage investments in solar and other forms of renewable energy.

Here Are Musk’s 15 Best Tweets From The Two Interviews, Lightly Edited And Condensed For Clarity:

A sizable portion of the industry from meme coins to NFTs has proven to be highly responsive to celebrity shilling. In the early stages of 2021, Elon Musk had the cryptocurrency market wrapped around his finger. Real-time last sale data for U.S. stock quotes reflect trades reported through Nasdaq only. Intraday data delayed at least 15 minutes or per exchange requirements. Bitcoin tested $65,000 as support as United States markets opened Nov. 15 with a weekend surge that ended in a retracement. Musk’s tweet was made in response to an article based on remarks from Magda Wierzycka, head of cybersecurity firm Syngia (SYGJ.J), who in a radio interview last week accused him of “price manipulation” and selling a “big part” of his exposure. Bitcoin was also supported Monday after billionaire hedge fund manager Paul Tudor Jones told CNBC on Monday that bitcoin is a great way to protect his wealth over the long run and is part of his portfolio just like gold. Bitcoin may still test the $25,000 support level in the coming weeks, Ava Trade’s Aslam said. A break above $32,000 would herald a stronger recovery, according to Steen Jakobsen, chief investment officer at Saxo Bank.
Musk continued by explaining that he’ll let Tesla accept bitcoin as a payment for electric cars once the energy consumed to mine the cryptocurrency reaches about 50% renewable. And even 5% of big U.S. companies investing in the cryptocurrency would translate to a lot of money. The companies that make up the S&P 500 currently have about $1 trillion in cash. Five percent of that would be $50 billion, more than enough to push up the price of bitcoin — which has a total market value of $900 billion — considerably higher. On Feb. 8, Tesla announced its purchase of $1.5 billion in BTC and the price skyrocketed 19.5% from $38,850 to $46,400 within the day. The amount of BTC bought by Tesla and used to purchase its vehicles was relatively small compared to daily trading volume on the nearly $1 trillion asset, yet it controlled the narrative in the market for months. On May 12, an “Elon effect” of a different sort took place when the CEO announced Tesla would no longer accept BTC as payment.
bitcoin price elon musk
In an SEC filing in February, Tesla revealed that it bought $1.5 billion worth of bitcoin and would accept it as a form of payment. The company later said it registered a net gain of $101 million from sales of bitcoin during the quarter, helping to boost its net profits to a record high in the first quarter. The price of bitcoin jumped about 4% Monday afternoon after Tesla CEO Elon Musk tweeted that he was having active discussions regarding the sustainability of the digital coin. The price of bitcoin popped about 4% Monday afternoon after Tesla CEO Elon Musk tweeted that he was having active discussions regarding the sustainability of the digital coin. Musk also addressed bitcoin’s “centralization” problem, saying that many mining companies operate from China. He linked to a story from a few weeks ago that showed how a flooded mine in China led to a massive drop in bitcoin computing power. Musk’s criticism of bitcoin took down most of the crypto market, with few coins being able to resist the panic. Bitcoin was trading at around $45,000 for a coin at the time of this writing, still well below last week’s levels.
To be sure, bitcoin is still up solidly so far in 2021, up 27%, and dogecoin is up nearly 8,000% in the year to date. “Musk is definitely too influential on Bitcoin prices,” Kevin Kang, co-founder and principal at BKCoin Capital, told MarketWatch in emailed comments, while attending a bitcoin conference in Miami. On traditional markets, Tesla fell over 3% at the U.S. market’s open, a move which sawcopycat behavior from Bitcoin, as was the case last week. Ether , Solana and Polkadot were the leading major altcoins on the day, standing out from the flat progress of other tokens. Elon Musk, the chief executive of Tesla Inc, reiterated his backing of Bitcoin at a conference Wednesday, saying he owns the token along with Dogecoin and Ethereum. Elon Musk trumpets his skills, touts dogecoin over bitcoin, and defends his Twitter habit in 2 new interviews. The price of Bitcoin climbed above $40,000 on Monday, a gain of 13% in 24 hours after Musk responded on Twitter to…

Elon Musk Hints At Tesla’s Bitcoin Holdings In Twitter Exchange

While the market had already fallen hard off of its highs in the months before, this tweet put the nail in the coffin, sending the price of BTC from $56,800 to $49,500. Coinbase Musk also reiterated why he’s attracted to dogecoin, a tongue-in-cheek, meme-based cryptocurrency that was originally created as a “joke,” over other cryptocurrencies like bitcoin and ethereum. Elon Musk, the Tesla TSLA billionaire who’s helped the “joke” bitcoin rival dogecoin become a major cryptocurrency this year, has outlined exactly why he supports the memecoin over the likes of bitcoin, ethereum and other cryptocurrencies. However, his relationship with the digital coin changed earlier this month. He tweeted on May 12 that the company “suspended vehicle purchases” using bitcoin, out of concern over “rapidly increasing use of fossil fuels” for bitcoin mining. Read more about Buy Litecoin here. Musk’s sudden realization that bitcoin might not be eco-friendly to mine caused immediate panic, and the price dropped from around $54,000 to $46,000. He made several remarks against bitcoin and in favor of dogecoin, thus tanking bitcoin’s price even further. The coin dropped to a low of around $42,000, a level unseen since mid-February.

Who is the world richest man?

Jeff Bezos is the world’s richest for the fourth year running, worth $177 billion, while Elon Musk rocketed into the number two spot with $151 billion, as Tesla and Amazon shares surged. Altogether these billionaires are worth $13.1 trillion, up from $8 trillion in 2020.

In a follow-up tweet on Thursday, Musk added, “To be clear, I strongly believe in crypto, but it can’t drive a massive increase in fossil fuel use, especially coal.” The massive drop in Bitcoin’s price following the announcement is also evidence that the crypto is in a bubble, Denier told the post by email. The market rally is chopping up investors financially and mentally, Nio Day showcased two EV sedans to take on Tesla. China-based EV rivals Nio fell 7.3%, while Xpeng lost 5% and Li Auto declined 3%. Xpeng beat Q1 views early Thursday and gave relatively upbeat deliveries guidance for Q2. Tesla stock is trading well below its 50-day moving average, which itself is sloping downward, according to MarketSmith chart analysis. The study shows that Bitcoin currently consumes around 110 Terawatt Hours per year or 0.55% of global electricity production. That’s roughly equivalent to the annual energy draw of small countries like Malaysia or Sweden, according to the Harvard Business Review. In other related news, Goldman Sachs now considers Bitcoin as a new asset class.

For the moment at least, crypto exchanges are not going to have to be processing large sell orders from the world’s biggest car company. As of Thursday morning, the prices of top cryptocurrencies — bitcoins and ethers — fell more than 10% over the last 24 hours, according to crypto market data site CoinGecko. In addition to personal bitcoin holdings and Tesla’s bitcoin holdings, his aerospace company SpaceX also owns bitcoin. Cryptocurrencies get a bad rap for energy usage because they do indeed use up an awful lot of energy, at least many of them do.
bitcoin price elon musk
Shortly after, the automakerstarted accepting the cryptocurrency as paymenton new vehicles. Bitcoin evangelists are quick to point out, however, that many of the headlines on crypto mining’s energy consumption often leaves out the energy sources. For example, the environmental impact would be vastly different if the computers were powered by renewable energy. His appearance last week on “Saturday Night Live” centered largely on skits about cryptocurrency, including Dogecoin, which fell 15% to below 40 cents after Musk’s tweet. During the company’s Q1 earnings call, Elon Musk’s CFO, echoing Musk’s tweet in March, made a bold promise that Tesla would not sell any of its remaining 90 percent of Bitcoin. If Tesla kept its word, that lucrative investment has now become a rapidly depreciating asset after Bitcoin’s dollar value crashed in the past two weeks. The contradiction with bitcoin is that it is comparatively old tech but still the market leader. Slow, energy-inefficient and often expensive to use, it is diesel power in an age of electrification. Prior to Tuesday’s rise, dogecoin had been sinking in price for several weeks.

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Aside from Musk’s antics that sent Doge and Bitcoin on wild rides, a host of other developments have pushed around prices in the past eight days. Dogecoin was down 9.6% in the last 24 hours, trading at 47 cents late Sunday afternoon, according to data from CoinMarketCap.com. A question that has long bedeviled bitcoin observers is how to value it. Lately the answer to its worth has been whatever influential people like Elon Musk and star stock picker Cathie Wood say it is. For Bitcoin, much of the drop can be attributed to Musk, who said Tesla would stop accepting Bitcoin until it became more environmentally friendly, as I wrote for the Deseret News.

After Musk’s tweet, the Dogecoin price rose almost instantaneously from $0.16 to $0.23, though it saw even larger gains on individual exchanges. Musk also tweeted that miners are “committed to publish current & planned renewable usage & to ask miners to do so. Potentially promising.” After a great start to the week, the Bitcoin has to digest a few rather negative headlines in relation to a statement made by Apple CEO Tim Cook and the recent actions by Tesla boss and crypto enthusiast Elon Musk. Shares in Hertz soared after the rental-car company backed a $6 billion takeover bid that includes a rare payout to shareholders of a bankrupt company. The billionaire hedge fund investor said he had amassed a 6 percent stake in the chain, praising its performance during the pandemic and its delivery capabilities.

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“Bitcoin has a lot of clever ideas but [bitcoin’s blocksize] parameters were set in 2008, or something,” Musk said. Starlink, a SpaceX satellite internet network project that now has 70,000 users across 12 countries, is designed to fill geographic gaps between areas covered by ground-based internet connections and cell coverage. “Bitcoin is an interesting example and the prime mover on this,” Musk said in a video shared to Twitter by Time. However, others remain unconvinced, and cryptocurrencies remain controversial. Global regulators are sceptical, on account of their volatility and vulnerability to theft or hacking.

Is it worth buying Bitcoin?

The high liquidity associated with bitcoin makes it a great investment vessel if you’re looking for short-term profit. Digital currencies may also be a long-term investment due to their high market demand. Lower inflation risk.

Musk also said his experience in the payments industry means he understands how the money system works better than most. Tesla’s decision to sell 10% of its bitcoin holding “has brought about fresh accusations of pumping and dumping by Musk and reiterated the need for an investigation by the SEC ,” Clark said. By signing up, you agree to our Privacy Notice and European users agree to the data transfer policy. Industry analyst Dan Ives, managing director of equity research at Wedbush Securities, on Thursday called Musk’s “major U-turn” on crypto a “head-scratching move.” Bitcoin accounts for 0.69% of the world’s total electricity consumption, according to researchers at the University of Cambridge Centre for Alternative Finance . Get Started Learn how you can make more money with IBD’s investing tools, top-performing stock lists, and educational content. IBD Videos Get market updates, educational videos, webinars, and stock analysis. “Cryptocurrency is a good idea on many levels and we believe it has a promising future, but this cannot come at a great cost to the environment,” Musk wrote. MUSK has a maximum total supply of 1,000,000 billion MUSK tokens and is distributed according to the fair launch mechanism.

Analysts expect a strong set of numbers, though they’re closely watching for the impact of increased competition. Given the impact Musk’s tweet had on Bitcoin’s price, any action just before or after will be scrutinized. Whether silly or serious, Musk’s tweets about cryptocurrency always seem to have some kind of impact on the price of the coin in question. However, as cryptocurrency becomes more mainstream and the market hopefully calms, we’ll see how long that remains true. But environmental concerns hampered efforts to lock in Bitcoin as a payment method, with the cryptocurrency’s poor environmental record triggering public criticism toward the company. That’s still quite a ways off it’s all-time high of $64,829, but bitcoin diehards have to be excited that it’s moving in a positive direction after Musk’s tweets from the past few months sent the price tumbling. Cryptocurrencies like bitcoin are notoriously bad for the environment, consuming enormous amounts of energy to run properly. Musk started accepting bitcoin for Teslas back in March but stopped in May when the billionaire said he was worried that crypto was bad for the environment.
Kang’s remarks come after Musk on Thursday evening issued a cryptic tweet that many in the world of digital assets were interpreting as the billionaire’s breakup with bitcoin. Musk’s statements and utterances about Bitcoin and other coins have an outsized effect on the nascent ecosystem, which already has to contend with significant volatility. Yesterday, Musk refuted the suggestion that he personally gained from influencing crypto market movements because he had not sold any of his personal holdings. During yesterday’s discussion, Musk said that Bitcoin has “a lot of potential.” But he discounted the possibility for the cryptocurrency’s base layer to become a medium of transactions because it had scarcity baked into its design. The base layer of Bitcoin consists of its blockchain, which is slow at processing transactions and will only ever mine 21 million Bitcoin. Musk’s support for cryptocurrency markets came after the Bitcoin price temporarily dipped below $30,000, raising fears of a prolonged downturn. “There may be some merit in combining something like ethereum and dogecoin,” Musk said, revealing he owns some ethereum tokens in addition to his bitcoin and dogecoin. The ethereum price leaped by almost 10% after Musk’s ethereum comments, climbing back over $2,000 per ether token after falling under the closely watched level this week. The wider bitcoin and crypto market also remains highly volatile and has fallen sharply in recent weeks, wiping almost $1 trillion worth of value from the combined market.

‘Sounds Shady’—Tesla Billionaire Elon Musk Challenges Binance CEO Over Dogecoin Glitch – Forbes

‘Sounds Shady’—Tesla Billionaire Elon Musk Challenges Binance CEO Over Dogecoin Glitch.

Posted: Tue, 23 Nov 2021 08:00:00 GMT [source]

He announced in May that Tesla would no longer accept bitcoin for car purchases, citing long-brewing environmental concerns for a swift reversal in the company’s position on the cryptocurrency. In February, Tesla revealed it had bought $1.5bn of bitcoin and would accept it as a form of payment for cars. But the cryptocurrency’s production is at odds with the company’s mission toward a “zero-emission future”. Tesla’s relationship with cryptocurrencies has been a stop-start rollercoaster. In February, the electric vehicle manufacturer announced it had purchased US$1.5 billion (£1.1 billion) of bitcoin and planned to accept the cryptocurrency in future as a means of payment from its customers. The price of the largest cryptocurrency surged that day from just over US$39,000 to US$46,000, on its way to an all-time high of almost US$65,000 in April – and a paper profit of well over US$1 billion for Tesla.

You’re reading Electrek— experts who break news about Tesla, electric vehicles, and green energy, day after day. Be sure to check out our homepage for all the latest news, and follow Electrek on Twitter, Facebook, and LinkedIn to stay in the loop. Annually, this would mean that Bitcoin mining and transactions consume more energy than the entire nation of Sweden or the Netherlands did in 2019, the researchers noted. Tesla’s embrace of Bitcoin at the time was seen as a huge step toward institutional acceptance of the cyber currency and it helped boost its price to record levels. Musk added in a tweet that Tesla would not sell any of its current bitcoin holdings, which had risen to nearly $2.5 billion as of the end of March. Tesla’s first-quarter earnings report recorded proceeds from sales of digital assets of $272 million and net digital assets of $1.33 billion. Musk now says he’s concerned about the rapidly increasing use of fossil fuels for Bitcoin mining and transactions. More than 10 percent and calling into question an economic model that had depended on the public support of megamoguls to keep crypto prices frothy.

“Dogecoin” is the most-googled crypto in more US states than bitcoin – Markets Insider

“Dogecoin” is the most-googled crypto in more US states than bitcoin.

Posted: Sun, 21 Nov 2021 08:00:00 GMT [source]

Based on his Twitter feed, Musk is also fascinated with Dogecoin, a joke cryptocurrency that was created to mock the crypto ecosystem. Its price has skyrocketed after Musk tweeted about it, and he is reported to be working with its development team. Last month, bitcoin miners approved the most anticipated upgrade to the bitcoin protocol since segregated witness in 2017. Known as Taproot, it’s expected to improve bitcoin’s privacy and efficiency via a new signature scheme called Schnorr that will replace bitcoin’s current elliptic curve digital signature algorithm . “What if your space heater was also a bitcoin, ethereum or doge mining node,” he said.

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