Bitcoin price reacted immediately to Elon Musk’s announcement earlier in the day that Tesla would not accept cryptocurrency payments for its electric cars.
Bitcoin price reacted immediately to Elon Musk's announcement earlier in the day that Tesla would not accept cryptocurrency payments for its electric cars, dropping by nearly $8,000 in a matter of hours.
In the last 24 hours, the price of the leading cryptocurrency fell from $57,470 to $48,900, after this news the coin is trying to recover strongly.
For several months now, Tesla and SpaceX CEO Elon Musk has continued to praise the crypto industry, as the world's favorite billionaire has consistently supported cryptocurrencies, Elon Musk has been tweeting Positive for digital currencies years ago, but he has already started participating in 2021.
Earlier this year, the electric car giant (Tesla) announced that it would accept crypto payments, and it also invested about $1.5 billion in bitcoin, and Musk himself admitted to owning some bitcoins personally at some point. Especially with his close ties to the cryptocurrency Dogecoin (DOGE) which he has promoted on a daily basis for a certain period of time.
Given all of that, it came as a huge shock to the crypto community when Musk recently announced that Tesla will no longer accept payments in the leading cryptocurrency, and according to him, this decision was made for environmental reasons, as Bitcoin mining is not environmentally friendly.
Extremely carbon-intensive mining and transactions are at odds with what Tesla stands for, and Musk's change of heart came just a few weeks after he argued that Bitcoin adoption could be a boon for renewable energy.
Bitcoin Bounces Amidst Confusion
Understandably, the industry is currently riddled with confusion and anger, although Musk's announcement continues to claim that cryptocurrency is a good idea on many levels and that it has a promising future. Also through the announcement, Musk said Tesla has no plans to sell it, but to use it in transactions once mining transitions to more sustainable energy.
Some see Musk as trying to manipulate the market, which, of course, was met with a lot of anger, however, the announcement itself appears to be a push towards a more green solution to Bitcoin mining.
Finally, there are also theories that this is another ploy to push DOGE forward, as Musk's preferred coin has a much smaller carbon footprint.
Does this mean you should buy now?
Bitcoin has certainly seen its fair share of ups and downs in recent weeks. One of the recent catalysts to push the price of the coin higher was Tesla's announcement that it would accept Bitcoin as payment for its cars, which gave more reason to believe that the digital currency could serve as a payment method in major companies.
However, with Tesla's recent big update and its reluctance to pay with cryptocurrency, we have seen a drop in prices, and yet there are still those who believe and accept the leading digital currency.
The price is expected to go up again, and we should see it go up to $60,000 again as the next price target, however, on the flip side, if it ends up being below $50,000, it's tough because it shows that investors don't care Buy at a key support level.