Bitcoin, Elon, Tesla and Carbon Footprints – What Next?

Nigel Frith

Tesla Logo on Smartphone in Front of Bitcoin Logo

Bitcoin’s price crash on the back of comments made by Tesla has provided another warning about the price volatility in the crypto markets. If the news at the end of last week from one of the largest corporations in the US wasn’t bad enough, there was more fall-out to follow over the weekend. On a week-to-week basis Bitcoin is now down 24.46% and the testing and subsequent breaking of the $50k price level has left the coin a lot of work to do if it is to push to new highs.

Tesla have come out on Monday morning to confirm they haven’t sold any of their Bitcoin holding. While they’ll be nursing P&L losses, that’s probably preferable to the fury they would have faced if they’d been exposed as pumping and dumping the market.

Rumours over the weekend emanated from Tesla founder Elon Musk’s personal Twitter account. Many interpreted his comments on the social media portal as pointing towards Tesla bailing out of its BTC position only days after stating that it wouldn’t.

Currently, as much thought is being given to the comments of Elon Musk as to the carefully crafted words of the Chair of the US Federal Reserve, Jerome Powell.

In response to the below Tweet from Twitter user @CryptoWhale, Musk replied “Indeed”

“Bitcoiners are going to slap themselves next quarter when they find out Tesla dumped the rest of their holdings. With the amount of hate @elonmusk is getting, I wouldn’t blame him…”

That was taken as a sign that the standard bearer of the crypto had fallen. Crypto exchange, Coin Metrics, which reports price on a 24/7 basis reports that BTC printed prices as low as $ 42,241 at 12.07am (ET) on Monday.

Elon Musk's tweet in response to Mr. Whale on Twitter

Source: Twitter

 

A recovery to over the $45k mark followed Musk Tweeting “To clarify speculation, Tesla has not sold any Bitcoin”. Of equal concern to those in long positions is the price action on the daily chart. The May month-to-date high of $59,272 now looks a long way off. Monday’s market price for Bitcoin is now over 30% off the 14th of April all-time high of $64,862.

Bitcoin Daily Price Chart – Year to date – 2021

BTC Price Dips in response to Tesla dumping their BTC

Source: IG

This trend started long before Tesla and Musk shared concerns about the high-carbon footprint of crypto networks which use more energy than entire countries. It’s estimated that Bitcoin miners use half as much energy as all the data centres in the world combined. While Amazon, Google and Microsoft have extensive carbon-offset programs in place to ensure they comply with their CSR policies, crypto as an industry is a free-for-all, and that is giving it a bad name.

Bitcoin Daily Price Chart – Year to date – 2021 & price support levels

BTC Price Dip in Response to Tesla Dumping BTC with Price Support Level

Source: IG

The next key support for BTC is the $43,028 low from the 28th of February.

After that there is support at $32,577 the low of the 27th of January. Followed by $27,974 – the year to date low on the 4th of January.

 

If you want to know more about this topic, or have been scammed by a fraudulent broker, please contact us at [email protected]


Nigel Frith

Latest news

MetaTrader MT4 and MT5 Disappear From Apple’s App Store
Social media is abuzz regarding reports that MetaQuotes apps have been removed from the Apple App Store. Read more
The New Crypto Scams To Look Out For After ‘The Merge’
After six years of delays, Ethereum’s ‘The Merge’ has finally been completed. Read more

Safest Forex Brokers 2022

Broker Info Best In Customer Satisfaction Score
#1 AvaTrade LogoYour capital is at risk Founded: 2006 Globally regulated broker
Number One Broker
BEST CUSTOMER SUPPORT Visit broker
4.9
#2 BlackBull Markets LogoYour capital is at risk Founded: 2014 Global Forex Broker
Number One Broker
BEST SPREADS Visit broker
4.8
#3 66% of retail CFD accounts lose money Founded: 2014 Global Forex & CFD Broker
Number One Broker
Best Trading Conditions Visit broker
4.9
#4 Forex Broker eToro Logo67% of CFD traders lose Founded: 2007 Global CFD & FX Broker
Number One Broker
ALL-INCLUSIVE TRADING PLATFORM Visit broker
4.9
#5 Plus500 Forex broker logo72 % of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. Founded: 2008 Global CFD Broker
Number One Broker
Best Trading App Visit broker
5

    Forex Fraud Certified Brokers

    IQ Option Logo
    City Index Logo
    ATFX Logo
    Forex.com Logo
    Plus500 Small Logo
    OctaFX Logo
    LegacyFX Small Logo
    XM Logo
    Exness Small Logo
    HYCM Logo
    BlackBull Markets Logo
    IC Markets Logo
    AvaTrade logo
    skilling logo