Will regulation crash the price of Bitcoin?
CryptocurrencyElon Musk's cat-and-mouse game with Bitcoin
Elon Musk pulls the ripcord: After the Bitcoin rate on the cryptocurrency market temporarily slumped a good 30 percent on Wednesday, the Tesla boss reported by tweet and abruptly stopped the plunge of the still most important cyber currency. In the middle of the crash, two words and two emojis are sufficient for the command “full drive back”: “Tesla has” (translated: Tesla has) as well as a diamond and hands.
Tesla has 💎 🙌
- Elon Musk (@elonmusk) May 19, 2021
Bitcoin was recently in a massive downward spiral. In the past few weeks, the rate has halved to just under 30,000 US dollars. The currency plunged to the $ 30,066 mark yesterday, its lowest level since late January. The record high was more than twice as high in mid-April, at just under $ 65,000. Analyst Timo Emden from Emden Research spoke of panic sales in the meantime. "Obviously nobody wants to fall into the trap at the moment." Other digital currencies such as ether, the number two after Bitcoin, and Dogecoin were also torn into the depths. Ether fell up to 40 percent to just under $ 2,000.
Accordingly, there was a sigh of relief on the crypto market when the recovery began. Because in plain language, Musk's message means: "Tesla has diamond hands", writes the portal t3n. In stock exchange slang, “Diamond Hands” denotes someone who will hold on to his investment until the bitter end, according to the translation. The counterpart to this is an investor with “paper hands” who dumps his investments at the first sign of a downward trend.
Almost magically, Musk's tweet worked like a parachute in free fall, and the Bitcoin crash came to a halt: Apparently, after days of guesswork, the crypto market has now come to the conclusion that Tesla will not sell its enormous Bitcoin holdings but will hold onto them.
Tesla & Bitcoin pic.twitter.com/YSswJmVZhP
- Elon Musk (@elonmusk) May 12, 2021
This is exactly what the crypto scene had recently doubted. The Tesla boss, who is actually a big crypto fan, can only blame himself for this. Because he himself recently caused a lot of confusion and thus fueled sales speculation. Just a week ago he surprisingly announced via tweet that payments for Teslas with Bitcoin had been stopped. The reason he gave the miserable environmental balance in the production of bitcoins. "We are concerned about the surge in the use of fossil fuels for mining and transactions in Bitcoin," he said. Above all, the consumption of coal energy is questionable. Although he still believes in the future of cryptocurrencies, the development should not happen at the expense of the environment, said Musk.
Puzzles over Tesla's Bitcoin holdings
The open question investors had to ask themselves was: Would that be why Musk would sell Tesla's huge Bitcoin holdings? Instead of providing clarity, he followed up on Sunday with a tweet that left users with even bigger question marks. On the comment by @cryptowhale: "Bitcoin followers will slap themselves in the next quarter if they find out that Tesla has sold the rest of its Bitcoin holdings. With all the hatred that Elon Musk has, I wouldn't blame him for that (...) ”, Musk replied:“ Indeed ”. This was interpreted by the users as a sales signal. Whether it was meant that way is open.
Bitcoiners are going to slap themselves next quarter when they find out Tesla dumped the rest of their #Bitcoin holdings.
With the amount of hate @elonmusk is getting, I wouldn’t blame him ...
- Mr. Whale (@CryptoWhale) May 16, 2021
But the fact is: The price decline on the crypto market accelerated as a result. When China then also banned companies that offer trading in cryptocurrencies - which Musk could not have foreseen - this was in a way too much. The declaration by Chinese banking associations that cryptocurrencies are “not real currencies” fueled fears of greater regulation in this market, which is important for digital currencies - and Bitcoin, Ripple and Ethereum only knew one direction: steeply downwards.
The stock market got into the downward spiral. All companies known to hold large positions in cryptos fell feathers. In February, Tesla announced the purchase of Bitcoin worth 1.5 billion US dollars, which had pushed the Bitcoin price up sharply, which ultimately meant that the height of the fall was correspondingly high. In parallel with the Bitcoin crash, Tesla shares also went into a tailspin. In the end, it closed 2.5 percent easier. For Musk, the trail of blood on the crypto market was definitely reason enough to speak clearly in his - albeit cryptic - message.
At least for the time being, he seems to have calmed the situation down. Nevertheless, he also pays a high price for his hacking: The market value of the Bitcoin holdings of his e-car pioneer has been roughly halved to 1.26 billion dollars as a result of the crash. This total is based on the assumption that the value recorded at the end of the quarter of roughly $ 2.5 billion has fallen by 49 percent as in the market. This would mean that the value would at least be close to the purchase price. Little consolation. Because the value of the bitcoins has a significant value for the Tesla balance sheet. Without Musk's crypto bet and the huge increase in value at Bitcoin, he would have had to report a loss for Tesla in the first quarter. And not everyone is convinced that it will stay that way. "The cat and mouse game Elon Musks still leaves a bland aftertaste," says analyst Timo Emden.
- What is electrical energy converted into
- What is the danger of globalization
- How does TeamViewer make a profit
- In programming what is a wrapper
- Do medical students take math classes?
- What is ozonolysis in organic chemistry
- How high should bar stools be
- What tools are required for consultants
- Where can aluminum foil be used
- Uber is safe and reliable in Dubai
- Is intelligence, talent and creativity subjective
- Is blender free for commercial use
- What is the story of the candle
- What does 14k 88
- How much does a Livspace design cost
- Intelligence varies from dog to dog
- When should I capitalize on science?
- What are data protection coins
- What can be found during a colonoscopy
- What does Sinus Die
- How Microsoft interviewed an Android developer
- Can the police arrest a woman without an arrest warrant?
- What is a narco test
- When were you in Phu Bai Hue
- What is search visibility in SEO 1
- How can I overcome mid life disappointment
- What is capital about stock tips companies
- How is the photon an electromagnetic wave
- What is possible but not yet
- Can I take astronomy from biology?
- What are the good things to learn
- Men are extinct
- Now comes in handy faster than light travel
- Who is better Kodak Black or Lil Wayne