Business

Bitcoin hits 3-month low on Musk comments before rally

by Mychael Schnell - 05/17/21 9:35 AM ET

Bitcoin rallied after hitting a three-month low Monday, following comments from Tesla CEO Elon Musk about the company’s cryptocurrency assets.

Bitcoin dropped more than 9 percent on Monday, falling to $42,185, which was its lowest price since Feb. 8, Reuters reported. It later rallied back to around $45,190.

The volatility in the cryptocurrency’s price comes after Musk on Wednesday announced that Tesla would no longer be accepting Bitcoin as payment for purchases, writing that the company is concerned about the environmental effects of the cryptocurrency.

“We are concerned about rapidly increasing use of fossil fuels for Bitcoin mining and transactions, especially coal, which has the worst emissions of any fuel,” Musk wrote in a statement posted to Twitter.

Tesla & Bitcoin pic.twitter.com/YSswJmVZhP

— Elon Musk (@elonmusk) May 12, 2021

On Monday morning, Musk wrote on Twitter that “Tesla has not sold any Bitcoin,” likely in response to speculation that the electric vehicle and clean energy company was mulling, or already did, selling off some of its cryptocurrency holdings, Reuters noted.

To clarify speculation, Tesla has not sold any Bitcoin

— Elon Musk (@elonmusk) May 17, 2021

In February, Tesla purchased $1.5 billion worth of Bitcoin.

On Sunday, the Twitter handle @CryptoWhale wrote that “Bitcoiners are going to slap themselves next quarter when they find out Tesla dumped the rest of their #Bitcoin holdings. With the amount of hate @elonmusk is getting, I wouldn’t blame him.”

Musk responded to the tweet, writing “Indeed.”

Indeed

— Elon Musk (@elonmusk) May 16, 2021

The Hill has reached out to Musk for comment.

Musk, one of the richest people in the world, has frequently encouraged his internet fans to invest in cryptocurrency. Recently, however, the CEO has moved away from Bitcoin, becoming more enthusiastic about Dogecoin, Reuters noted.

The value of Dogecoin, however, dropped after Musk’s hosting appearance on “Saturday Night Live” earlier this month, where he said Dogecoin was a “hustle.”

The cryptocurrency dropped at least 28 percent after the CEO’s appearance.

Earlier this month, Musk said cryptocurrency was “promising,” adding “but please invest with caution!”