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Bitcoin is the world’s largest cryptocurrency and Elon Musk is one of the most influential names in the world. Both names have been making headlines for quite some time, especially since Elon Musk’s Tesla was reported to own Bitcoin.
However, a few twists and turns resulted in slight estrangement between the two when Musk announced on May 12th that Tesla will no longer be accepting Bitcoin as payment for its vehicles.
The decision was made by the Tesla CEO due to the impact of BTC mining on the environment.
Bitcoin has been on a roller coaster ever since. However, it has now reached its highest level since May, $51,737 (at the time of writing) and is performing better than the critics anticipated. Let’s find out how BTC was affected and where Musk and Bitcoin stand at the moment.
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Where Do Bitcoin and Elon Musk Stand at the Moment?
Earlier this year, Tesla CEO, Elon Musk stated that the electric car manufacturer will be accepting Bitcoin from its customers as payment for its vehicles.
However, soon after Musk announced that Tesla will be ceasing the option to pay for a Tesla vehicle using Bitcoin due to environmental concerns. He stated that Bitcoin mining takes up plenty of energy, which adversely affects the environment. Hence, Tesla will not support BTC payments anymore.
He also tweeted.
Following the announcement, the price of Bitcoin took a nosedive and dropped at least 14% in 24 hours.
Bitcoin’s momentum took a further hit due to Tesla’s statement and stance and China’s crackdown on the mining facilities in the country. China’s crackdown caused the BTC hash rate to hit an 8-month low and led the miners to move to more crypto-friendly countries.
This ordeal caused the flagship digital asset to drop even more, which was noted to be around 40% in one week. By this time, the price of BTC was as low as $30,000.
The downward momentum of the price of the largest crypto asset continued throughout June and reached the $28,000 price region. This was noted to be the local bottom level for BTC.
At the beginning of July, things started to take a positive turn for the flagship crypto asset. Bitcoin noticeably scored 10 consecutive green candles from July 21st to July 30th and has now crossed the $51,000 price region.
Here is a graph by CoinGecko that shows the price of BTC over the last four months.
Many Bitcoin enthusiasts have been of the view that Musk has lost his influence in the crypto market. However, it seems that the current price surge and bullish momentum noted for the flagship crypto-asset might be a result of Musk’s statements.
On July 21st, Elon Musk had a conference in which he reaffirmed that he still owns BTC and does not intend on selling it.
Musk stated:
“If the price of bitcoin goes down, I lose money. I might pump but I don’t dump.”
Since the conference, the price of Bitcoin was seen to slowly move upwards and has now broken through the $51,000 resistance level.
It has also been stated by the Tesla CEO that the electric car manufacturer might start accepting BTC as payment again, considering the environmental concerns are resolved.
What Should BTC Investors and Traders Know?
Considering the facts mentioned above, it seems that Elon Musk is still in favor of the flagship digital asset. The price surge of BTC has also been credited to Musk to some extent, while many still consider his influence to be decreasing with time.
Regardless, Bitcoin is seen to be at a good point right now, which has been positive news for BTC investors and traders.
Elon Musk’s continued support towards the crypto asset is one of several reasons why Bitcoin is the most prominent digital currency in the world.
Therefore, if you are new to the crypto space and want to purchase BTC then make sure you choose some of the lowest fee Bitcoin exchanges.
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