Elon Musk back to being a Bitcoin bull? With the fluctuating prices of crypto and Elon Musk suddenly deciding to pull out Bitcoin from Tesla's payment, it's fair enough to say that it's been quite a tough week or at least the second half of the month. With first-time traders scrambling around with massive losses selling their coins at really low prices and long-time traders holding due to the familiarity of volatility, there's definitely been a lot of movement in crypto.
Elon Musk Dogecoin Bull: Thoughts on $BTC?
Elon Musk, who is really big on Dogecoin, said that they are pulling out Bitcoin from Tesla payment options due to its "environmental" issues. Although this discussion has already been tackled by numerous reports with some concluding that conventional banking is actually more harmful than cryptocurrency, Elon Musk's tweet was followed by a massive drop in $BTC prices.
One misconception that some people had was that Elon Musk had sold his Bitcoin holdings and that he no longer believed in the coin. He then later clarified that he did not sell any of his Bitcoin holdings. The Tesla CEO has now made a statement on Twitter that somehow seems like he is supporting the cryptocurrency yet again due to the use of the words "potentially promising."
Spoke with North American Bitcoin miners. They committed to publish current & planned renewable usage & to ask miners WW to do so. Potentially promising.— Elon Musk (@elonmusk) May 24, 2021
Elon Musk Bitcoin Stance
Elon Musk noted that he had spoken with certain North American Bitcoin miners and that they have reportedly committed to publishing current as well as planned renewable usage and also to ask other miners WW to do the same. He then ended the Tweet with two words to show his support, "potentially promising."
Aside from the big dip caused by Elon Musk's previous announcement of Tesla dropping Bitcoin, another massive move has moved the market and has caused not just Bitcoin but also other cryptocurrencies to drop massively in value.
China Cracks Down on Crypto
According to Reuters, cryptocurrency miners include BTC.TOP and HashCow have halted all or may be part of their China operations after Beijing had started to intensify the crackdown on bitcoin trading and mining. Beijing is currently hammering all digital currencies amid the heightened global regulatory scrutiny.
Vice Premier Liu He led the State Council committee and announced the crackdown late on Friday as somewhat part of their efforts to be able to fend off "financial risk." It was also the very first time that China's own cabinet has started to target virtual currency mining, a really sizable business in the world's reported second-largest economy.
Could Crypto Go Down?
A number of estimates point out that China actually accounts for up to 70% of the global crypto supply. Cryptocurrency exchange Huobi just suspended both their crypto-mining as well as some of their trading services to other clients coming from Mainland China on Monday. Huobi then added that it will now be focusing on its business overseas.
For those experiencing massive drops in the cryptocurrencies they are holding, this could go on for a while and be quite normal since a number of large players are slowly dropping out of the crypto game.
Related Article: Tesla Bull Explains How to Handle Volatility with $TSLA
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Written by Urian B.