Elon Musk has crashed Bitcoin to pre-Tesla investment levels

midian182

Posts: 6,763   +61
Staff member
In context: Bitcoin’s surge in recent times owes a lot to Elon Musk. But all the gains it’s made since Tesla publicly embraced the crypto have been wiped out by... Elon Musk. BTC’s price fell below $40,000 earlier today for the first time since the EV maker announced its investment in the currency three months ago.

Tesla appeared to be Bitcoin’s biggest supporter earlier this year. The company’s $1.5 billion investment and announcement that it would accept the crypto as payment for its products pushed the price to $44,000. In April, BTC reached a record high of almost $65,000.

But Tesla’s relationship with Bitcoin has soured recently. The price crashed last week when Musk reversed the decision to allow customers to pay for Tesla vehicles using the token due to environmental concerns over mining, wiping 17% off the price. He also suggested over the weekend that the company had sold its holdings, and while Musk later confirmed this wasn’t the case, the damage had already been done.

Bitcoin’s price dropped to $38,500 a few hours ago, the lowest since before Tesla’s investment and a drop of around 40% from last month’s peak.

While Musk’s actions have had a significant impact on BTC’s price, there were other factors behind the decline. As noted by Bloomberg, that includes the People’s Bank of China “reiterating that digital tokens can’t be used as a form of payment, highlighting the regulatory risk hanging over cryptocurrencies.”

Bitcoin isn’t the only crypto being affected by Musk. Dogecoin’s price plummeted 35% recently after he described it as a “hustle” during his appearance on Saturday Night Live. He did help Doge make back some of the losses by proposing an upgrade to its efficiency and tweeting a poll asking if Tesla should accept it as payment.

Those in the industry aren't happy about the influence Musk holds. “I’m not comfortable with any one person or small entity being able to manipulate the market. I guess that’s where we are in crypto right now,” Michi Lumin, a Colorado-based developer who helps maintain Dogecoin, told Wired. “It’s not great, that’s for sure.”

Image credit: Hi my name is Jacco

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Scrye74

Posts: 33   +66
The Chinese also took a swipe at crypto which is causing them to tank even more. The fact that there are almost six thousand cryptocurrencies tells me all I need to know about their legitimacy (not to mention some of the crypto names).

Hopefully soon I will get a couple 3090s cheap on ebay.
 

fl21289

Posts: 237   +285
LOL everyone who's happy. While the smart ones are buying in the Dip. Yes keep burning!!! So I can keep buying. Also Mining profits are skyrocketing at the moment because of this again. Market goes down, more transactions are being done, more hashing is needed. Keep it going!
 

Peter Farkas

Posts: 554   +408
LOL everyone who's happy. While the smart ones are buying in the Dip. Yes keep burning!!! So I can keep buying. Also Mining profits are skyrocketing at the moment because of this again. Market goes down, more transactions are being done, more hashing is needed. Keep it going!
that is true, I saw transactions costing up to $60 on the ETH network during today's crash.
 

fl21289

Posts: 237   +285
Where are all the Bitcoin Gurus now?

You know: the ones who wanna tell you all about "Blockchain's future".
Still here profiting in mining from all this... You know the market balancing itself. But don't mind me. I'm no one to change someone's mind.

that is true, I saw transactions costing up to $60 on the ETH network during today's crash.
Don't say that aloud... People aren't going to believe you.
 

Peter Farkas

Posts: 554   +408
I would be ok with a crypto crash completely, hopefully that would drive money back to the stock market. My stocks would appreciate a little more buyers on the market. ;-)

I sold all my ETH @4300 some days ago and I havent been trading with crypto for months and wont trade them ever again. I am all in tech stocks moving forward.
The only crypto I have is what my gaming rig with a 3060Ti can mine in its idle times.
 

Achaios

Posts: 120   +365
Not Musk, it was China.

Read:

https://www.reuters.com/technology/...tent&utm_medium=trueAnthem&utm_source=twitter

REUTERS

Most miners and buyers thereof are Chinese ofc.

Remember the guys who had bought every RTX 3K laptop they could get their hands on and put them on mining? Chinese. Remember the guy who had transformed his house into a mining operation and filled every room with racks with hundreds of motherboards and GPUs? Chinese too.

It was a Chinese problem and China gave a solution.
 

fl21289

Posts: 237   +285
I would be ok with a crypto crash completely, hopefully that would drive money back to the stock market. My stocks would appreciate a little more buyers on the market. ;-)

I sold all my ETH @4300 some days ago and I havent been trading with crypto for months and wont trade them ever again. I am all in tech stocks moving forward.
The only crypto I have is what my gaming rig with a 3060Ti can mine in its idle times.
Yeah my 401k has been taking a few hits with this market lately. But still getting a return rate of about 15%. Normally, yearly I would be getting 25-30%.
 

wiyosaya

Posts: 5,899   +4,135
Not Musk, it was China.

Read:

https://www.reuters.com/technology/...tent&utm_medium=trueAnthem&utm_source=twitter

REUTERS

Most miners and buyers thereof are Chinese ofc.

Remember the guys who had bought every RTX 3K laptop they could get their hands on and put them on mining? Chinese. Remember the guy who had transformed his house into a mining operation and filled every room with racks with hundreds of motherboards and GPUs? Chinese too.

It was a Chinese problem and China gave a solution.
Well, IMO, many people give Musky entirely too much credit for everything he does and every utterance he makes. 🤣
 

ikesmasher

Posts: 3,108   +1,499
I would be ok with a crypto crash completely, hopefully that would drive money back to the stock market. My stocks would appreciate a little more buyers on the market. ;-)

I sold all my ETH @4300 some days ago and I havent been trading with crypto for months and wont trade them ever again. I am all in tech stocks moving forward.
The only crypto I have is what my gaming rig with a 3060Ti can mine in its idle times.
Honestly the biggest thing they could do for that is to remove the day trading rule. Thats the only reason I stopped dabbling in stocks. Things are way too volatile in the 21st century to not allow casual investors to day trade. Or at least lower the limit from 25k to like 1-5k.