Bruised bitcoin nurses wounds as Elon Musk fires fresh salvo on Twitter

  • Tesla CEO Elon Musk has been dueling on Twitter with critics of his decision to suspend payments using Bitcoin on environmental concerns.
Representations of virtual currency Bitcoin are seen in front of Tesla logo. (REUTERS)
Representations of virtual currency Bitcoin are seen in front of Tesla logo.

Bitcoin nursed losses from a bruising weekend during which Elon Musk again whipsawed the token, in part by seeming to imply that Tesla Inc. may sell or has sold its holdings.

The largest digital currency extended a bout of weakness to slide to $43,874 on Sunday, the lowest since February. It rallied to $45,200 as of 11:38 a.m. on Monday in Tokyo but remains about $20,000 shy of the record set in April. Other cryptocurrencies such as Ether and Dogecoin are also under pressure.

Also check these Vehicles

Find more Cars
Tesla Model S (HT Auto photo)
UPCOMING
BatteryCapacity Icon75 kWh Range Icon396 km
₹70 Lakhs - 1 Cr
Alert Me When Launched
Tesla Model 3 (HT Auto photo)
UPCOMING
BatteryCapacity Icon82kWh Range Icon 555 km
₹ 70 - 90 Lakhs
Alert Me When Launched
Lexus Es (HT Auto photo)
Engine Icon2487.0 cc FuelType IconMultiple
₹ 56.55 - 62.19 Lakhs
Compare
View Offers
Bmw I4 (HT Auto photo)
BatteryCapacity Icon83.9 kWh Range Icon493 Km
₹ 69.90 Lakh
Compare
Volkswagen Id.7 (HT Auto photo)
UPCOMING
BatteryCapacity Icon77 kWh Range Icon621 Km
₹ 70 Lakhs
Alert Me When Launched
Hyundai Creta (HT Auto photo)
Engine Icon1497 cc FuelType IconMultiple
₹ 11 - 20.15 Lakhs
Compare
View Offers

Tesla Chief Executive Officer Musk spent the past couple of days dueling on Twitter with critics of his decision to suspend payments using Bitcoin on environmental concerns. On Sunday, the mercurial billionaire seemed to agree with a post saying the electric-vehicle maker should divest what at one point was a $1.5 billion Bitcoin stake.

Musk appears to have been “taking on all comers on Twitter over the weekend and caused some chunky gyrations across the coins," Chris Weston, head of research at Pepperstone Group Ltd., wrote in a note.

Musk’s disclosure in early February that Tesla had invested $1.5 billion in corporate cash to buy Bitcoin sent the token’s price to a record and lent legitimacy to virtual currencies, which have come closer to being a more mainstream asset in recent months despite lingering skepticism.

But in the past week his online commentary shook the crypto faithful even as Musk reiterated his support for digital currencies overall.

He lopped nearly $10,000 off the price of Bitcoin in hours last Wednesday after saying Tesla would no longer accept it as payment for cars. In the same statement, the tycoon said the firm wouldn’t be selling its holdings.

Dogecoin

File photo: A small toy figure is seen on the cryptocurrency representation with Dogecoin logo in the background. (REUTERS)
File photo: A small toy figure is seen on the cryptocurrency representation with Dogecoin logo in the background. (REUTERS)

A few days earlier, Musk had hosted “Saturday Night Live" and joked that Dogecoin -- a token he had previously promoted -- was a “hustle," denting its price. Days later he tweeted he was working with Doge developers to improve its transaction efficiency.

Bitcoin was already falling on Sunday when Musk replied “Indeed" to a tweet from @CryptoWhale suggesting Tesla get rid of its remaining Bitcoin holdings. His reply exacerbated the decline.

Responding to another thread criticizing his Bitcoin stance, Musk said: “Obnoxious threads like this make me want to go all in on Doge."

Some observers have cautioned that the cryptocurrency sector was ripe for a pullback anyway after giant gains over the past year. Bitcoin, for instance, is still sitting on a more than fourfold advance over the period. Ether, the second-largest token, is up more than 1,500% and Dogecoin over 19,000%.

Get insights into Upcoming Cars In India, Electric Vehicles, Upcoming Bikes in India and cutting-edge technology transforming the automotive landscape.

First Published Date: 17 May 2021, 09:18 AM IST
NEXT ARTICLE BEGINS

Check Latest Offers

Please provide your details to get Personalized Offers

Choose city
+91 | Choose city
Choose city
Select a dealer

Want to get the best price for your existing car?

Powered by: Spinny Logo
By clicking "View Offers" you Agree to our Terms and Privacy Policy
Dear Name

Please verify your mobile number.

+91 | Choose city
Couldn't verify the OTP.
It's either expired or it's incorrect.