Elon Musk’s Tweet Pushes BTC’s Price Through the Roof of Resistance
KEY TAKEAWAYS
- Elon Musk confirms that Tesla has sold 10% of its holdings in Q1
- Technoking’s tweets pushed BTC’s price through the roof of resistance
- Rise of green mining and mining rigs in the West will pose significant positivity for the cryptocurrency market in the long run
While refuting claims about market manipulation, Elon Musk’s tweets shedding hope on the acceptance of Bitcoin have pushed BTC’s price through the roof of resistance. If irony can take the form of a tweet, it must be one from Musk. Does the fate of cryptocurrency lie in the hands of green mining — or in a tweet from Tesla’s boss?
Tweet-for-Tat
You know the saying, “Words have the power to hurt or to heal” — a saying never truer than when describing Musk’s effect on markets. By the power of his tweets, Technoking has sent the cryptocurrency market plunging by up to 27% in the month of May alone.
Cointelegraph, in a bid to call on Musk to take responsibility for his tweets, published an article spelling out Sygnia CEO Magda Wierzycka’s criticisms of the Technoking. Elon Musk denied allegations of a BTC pump-and-dump and claimed that Tesla has only sold 10% of its holdings in Q1 in order to confirm the correlation between the liquidability of BTC and market fluctuations.
If Elon Musk did verify his tweets with Tesla’s legal team, it would equate to Tesla selling 10% of its BTC holdings for $275 million in Q1. Taking into consideration short-term capital gains tax, Tesla might still hold more than 40,000 BTC.
Green Mining — A Dystopia or a Utopia?
Aside from making a point, will Tesla keep its promises of resuming Bitcoin transactions when miners attain the milestone of reasonable clean energy usage? The conditional offer over a tweet just seems too good to be true.
The process of harnessing the energy requires a huge landmass — a luxury affordable only to bigger countries. Furthermore, the clean energy generated is prioritized for sectors that emit a high carbon footprint, such as the transportation sector — leaving the Fintech sector behind.
Hash power is also moving stateside as China cracks down on crypto mining, with North America poised to be the next mining rig when it comes to power supply and policy. With easily accessible resources, miners in the West will see an increase in mining revenue, along with lower mining costs.
In May 2021, Michael Saylor, the founder of MicroStrategy, synced up with North American miners, as well as Elon Musk, to form the Bitcoin Mining Council, a committee that defends “hostile” energy critics. (Musk, however, is not a member.) The founding members of the council hold 10% of the hash rate. With proposed plans to publish energy usage and sources, the hash rate in America is forecast to increase in the long haul.
Apart from the council’s effort, the regulatory environment in the U.S. is much more favorable for the cryptocurrency market. Instead of implementing a blanket ban over cryptocurrency, the regulators seek to protect investors by regulating service providers. This clearly shows that the country is aiming to foster the healthy growth of the cryptocurrency market. In fact, the cryptocurrency adoption rate currently stands at 8.31% in the United States, one of the highest adoption rates in the world.
In the near term, Dogefather’s tweets will continue to move the cryptocurrency market sideways. However, they will also generate long-term positives for both cryptocurrency and the clean energy industry. With miners moving from dystopia to utopia, attaining the goal of 50% clean energy usage may just be closer than shooting for the moon.
