Elon Musk should have stayed away from the cryptosphere. The billionaire said Tesla is not liquidating its Bitcoins (BTC). So what ?
The slap is now!
Can we really believe that a company can refuse to accept payments in Bitcoin for the purchase of its products, without wanting to part with them?
In a tweet from May 17, 2021, Elon musk ended rumors that You’re here sold part of its BTC.
@CryptoWhale had said in a tweet the day before that the “Bitcoiners to slap themselves next quarter when they find out Tesla got rid of the rest of their #Bitcoin holdings. ”
You’re here had already tried to reassure the markets by announcing that the company “will not be selling Bitcoin and we intend to use it for transactions as soon as mining shifts to more sustainable energy“.
The company had invested $ 1.5 billion in Bitcoin during the 1st quarter of 2021. It had sold 10% of its reserves in April 2021. According to Musk, this sale was intended to prove the liquidity of Bitcoin.
The damage is done !
Should we blame the bitcoiners who attack the “poor” Musk ? Tesla’s decision to reject Bitcoin is it quite justified?
The company caused the biggest crash in the BTC since the start of his bull run in October 2020.
Bitcoin left levels near $ 60,000, currently trading at $ 41,173. It even bottomed out at $ 31,768 on Bitfinex on May 19, 2021.
You’re here made the mistake of announcing that he will accept payments in BTC, before doing an about-face that he justifies by the pollution due to mining BTC.
The company should simply have thought twice before even “doing the interesting” by publicly declaring that it was adding Bitcoin to the list of its payment methods.
The eccentric billionaire then Tweeted an encouraging message, meaning that Tesla had “Diamond Hands,” a phrase denoting a person holding up against thick and thin.
No matter if You’re here liquidated or not its Bitcoins. He stuck a knife in the back of the Bitcoin, by causing a FUD which has profoundly changed the structure of markets.
The weekly RSI (14) currently stands at 47, far from the 60 and above during the “normal” phase of the bull run. The monthly RSI (14) stands at 64, while its value was above 90 in good weather.
The daily RSI (14) meanwhile currently stands at 24. We do not even know for the moment how far it can go.
Because of the show of Musk, Square even had to commit to no longer buying Bitcoins in the future for ecological reasons. The Norwegian Minister for the Environment who declared that he had Bitcoins will he have to sell them?
What conclusion to draw ? The billionaire is the enemy of the BTC markets today. It should not be forgotten.
Fashion is good, but blockchain is the future, we agree, right ?! It’s a great opportunity and an evolving sector! On a daily basis, my job is to try to popularize cryptos / blockchains as well as possible, which seem to be far too technical.
The comments and opinions expressed in this article are those of the author alone, and should not be considered as investment advice. Do your own research before making any investment decisions.