Bitcoin dives on Musk U-Turn on taking Bitcoin as payment

A late tweet from Elon Musk sent Bitcoin prices into freefall. Elon Musk decided that the environmental impact of Bitcoin mining has become too significant, his tweet was a major reversal for Tesla. Musk’s decision for Tesla to suspend acceptance of Bitcoin as payment for a car is a big hit for mainstream acceptance.

The environmental impact from mining Bitcoins was one of the biggest risks for the entire crypto market. Over the past couple of months, everyone disregarded news that Bitcoin uses more electricity than Argentina and Norway. Elon Musk’s tweet is Tesla getting ahead of the ESG movement. Shockingly, this did not become a bigger story until now. Bitcoin is in the danger zone and now everyone is scrambling to see which cryptocurrencies have the lowest energy transactions. Some buyers emerged on Bitcoin’s break of the $47,000 level, but I wouldn’t be surprised if sellers remained in control over the short-term.

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Ed Moya

Ed Moya

Contributing Author at OANDA
With more than 20 years’ trading experience, Ed Moya was a Senior Market Analyst with OANDA for the Americas from November 2018 to November 2023.

His particular expertise lies across a wide range of asset classes including FX, commodities, fixed income, stocks and cryptocurrencies.

Over the course of his career, Ed has worked with some of the leading forex brokerages, research teams and news departments on Wall Street including Global Forex Trading, FX Solutions and Trading Advantage. Prior to OANDA he worked with, where he provided market analysis on economic data and corporate news.

Based in New York, Ed is a regular guest on several major financial television networks including CNBC, Bloomberg TV, Yahoo! Finance Live, Fox Business, cheddar news, and CoinDesk TV. His views are trusted by the world’s most respected global newswires including Reuters, Bloomberg and the Associated Press, and he is regularly quoted in leading publications such as MSN, MarketWatch, Forbes, Seeking Alpha, The New York Times and The Wall Street Journal.

Ed holds a BA in Economics from Rutgers University.