Elon Musk suggests Tesla could sell off all its Bitcoin – causing price to tank 20%

Posted: 17 May 2021 7:00 pm

Bitcoin drops by 20% as Musk suggests Tesla may sell its crypto holdings

  • Musk recently agreed with a tweet suggesting that Tesla might offload its BTC holdings by the end of Q3 2021
  • Following a marketwide uproar, Musk had to issue a follow up tweet clarifying that Tesla was not selling its BTC.
  • During Musk's recent appearance on SNL, he jokingly referred to Dogecoin as being a "hustle".

The Dogefather - Elon Musk - seems to have set the crypto market on fire again, this time by hinting that Tesla may be looking to offload its US $1.5 billion Bitcoin acquisition in the near future. Replying to a tweet issued by digital currency analyst Mr Whale — which implied that by the end of Q3 2021 the Tesla CEO would have offloaded his entire BTC — Musk replied in the affirmative.

As was to be expected, soon after the exchange was over, Bitcoin's value proceeded to dip fast, sliding from AU $60.6k to as low as AU $54.2k, albeit briefly, within a matter of hours.

How to buy Bitcoin

It is worth mentioning that in recent weeks, the mercurial billionaire seems to have made a whole host of statements that have repeatedly riled up the global crypto market. As a result, a number of currencies such as BTC, ETH, DOT,ADA, DOGE have been on the receiving end of a lot of monetary traction (both positive as well as negative).

Just a few days ago, Musk hosted the popular America sketch show Saturday Night Live. During the opening monologue he joked that Dogecoin, a currency he has praised in the past, was a "hustle". Soon thereafter, the value of DOGE plummeted, having dropped by over 10% since his appearance.

Interestingly enough, he has since tweeted that he is now working with Doge's core dev team so as to help improve the currency's overall operability as well as transaction efficiency.

Musk clarifies "sale" claims

Following Musk's "implied" claim that Tesla was going to be selling its crypto assets, Bitcoin's value proceeded to drop by over 20%, leading BTC maximalists all over the world to lash out at the billionaire, accusing him of manipulating market sentiment. In the wake of this uproar, Musk took to social media to make it clear that his company had not sold any BTC (nor was it planning to anytime soon).

However, this clarification is still being viewed by many people with a certain degree of skepticism, especially as Tesla recently announced that it was going to stop accepting BTC as a means of payments for its various cars. The rationale given was that in light of BTCs growing carbon footprint, the company wanted to minimize its overall CO2 emissions.

Interested in cryptocurrency? Learn more about the basics with our beginner's guide to Bitcoin, dive deeper by learning about Ethereum and see what blockchain can do with our simple guide to DeFi.

Disclosure: The author owns a range of cryptocurrencies at the time of writing

Disclaimer: This information should not be interpreted as an endorsement of cryptocurrency or any specific provider, service or offering. It is not a recommendation to trade. Cryptocurrencies are speculative, complex and involve significant risks – they are highly volatile and sensitive to secondary activity. Performance is unpredictable and past performance is no guarantee of future performance. Consider your own circumstances, and obtain your own advice, before relying on this information. You should also verify the nature of any product or service (including its legal status and relevant regulatory requirements) and consult the relevant Regulators' websites before making any decision. Finder, or the author, may have holdings in the cryptocurrencies discussed.

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