It has been implied by the Chief Executive of Tesla, Elon Musk that the electric-car making company may have sold off its Bitcoin holdings, which has further plunged the price of the cryptocurrency. Bitcoin has now dipped 8% and is currently trading around the $44,000 mark, with the potential for a further dip.
During a Twitter exchange, an account by the name @CryptoWhale suggested that Bitcoin will likely spiral down when news about Tesla’s dumping reaches them. Elon Musk responded to this tweet with a simple “Indeed” implying it may be true.
Tesla did not completely close the doors to Bitcoin, however. According to Musk’s previous tweets, it is implied that the company plans to hold Bitcoin assets rather than sell them, and intends to use the digital assets for transactions once the mining process runs on sustainable energy. The amount of backlash he has received though for this decision appears to be having some influence on his decision-making though.
The billionaire investor has been a supporter of cryptocurrencies in general, Musk has spoken favorably for some of the major cryptocurrencies, including Bitcoin, and is responsible for rallying the prices quite frequently in the past year. Tesla was revealed to have owned $1.5 billion worth of Bitcoin during an SEC filling back in February this year. The electric car company boosted its net profits to a high record after registering a net income of $101 million just from selling Bitcoin in the first quarter.
In recent weeks, Musk has been in considerable favor of the meme currency Dogecoin. Recently, the CEO of Tesla has tweeted that the company will no longer accept Bitcoin payments due to environmental concerns, causing the price of Bitcoin to dip 5% minutes after the tweet.
Musk has pushed into Dogecoin, further endorsing the meme-inspired currency. In the latest announcement, Musk tweeted the aerospace venture SpaceX will now accept Dogecoin payment. His endorsements have consistently boosted Dogecoin prices over the year.