Bitcoin: How its price “collapsed” after Musk tweet

The price of Bitcoin, which is at a three-month low today, Monday May 17th, has reached €34.838.


The “deconstruction” of Bitcoin, which had reached trading on March 14 at 54.296 euros, started a few days ago after the “turn” of 180 degrees made by Elon Musk’s Tesla and took back its decision to accept Bitcoin payments as payment for its products, citing environmental reasons.


Tesla’s main problem is that all the time since Bitcoin was accepted and its price skyrocketed, it has been harshly criticised because Bitcoin requires huge amounts of energy to be mined.


Critics consider cryptocurrency “dirty” for the simple reason that the process of creating it, the so-called mining consumes a huge amount of energy from computers. Research from the University of Cambridge has shown that the Bitcoin network uses more than 121 terawatt-hours (TWh) per year, a quantity that would rank it among the top 30 electricity consumers in the world, if it were a country.


In fact, this announcement made $365.85 billion from the cryptocurrency market “disappear”.


And as the cryptocurrency market struggled to recover, with Bitcoin and most of the cryptocurrencies affected by its price course gaining ground, a new Elon Musk Tweet came to send Bitcoin back down.


Specifically, what Elon Musk did on Sunday night was to respond to a user Tweet who said that there is a possibility that Tesla will sell the $1.5 billion Bitcoin that it owns, and in fact soon. Elon Musk responded “Indeed”, causing panic in the market.


“Bitcoiners are going to slap themselves next quarter when they find out Tesla dumped the rest of their Bitcoin holding”, the tweet said. Musk replied with an “Indeed”, yesterday, Sunday May 15th.


And while Tesla’s divestment is unlikely to happen any time soon, Tesla has raised environmental concerns about using fossil fuels to drive and said it will sell its own Bitcoin holdings when mining is more environmentally friendly.


The future of the market is currently uncertain and despite the ups and downs due to billionaire Elon Musk, it seems to be gaining strength as there are several cryptocurrencies that have not been affected by the fall of Bitcoin.


At the same time, Elon Musk himself, while urging investors not to panic, revealed that he is working with Dogecoin engineers in order to improve it by increasing its price.


However, this increase was temporary after the catastrophic “INDEED” of Elon Musk.