We experienced a major Bitcoin dip yesterday after Elon Musk tweeted about Bitcoin’s energy use and how Tesla will no longer accept Bitcoin as payment. Bitcoin dipped a bit down below fifty thousand dollars.
Looking at the Bitcoin one-day chart, Bitcoin came all the way down to $46,980, but it is encouraging that it bounced strongly off that and went back above fifty thousand dollars. It all depends on if it will last because there is a possibility that there will be a lot of negative reactions towards Bitcoin as a result of Elon Musk’s tweets.
Most people hoped that the fifty-period moving average would find itself an area of support for Bitcoin, but the Elon Musk tweet significantly shook the market. We are still in a bull market as long as the price of Bitcoin does not fall below $39,000.
Most investors were not worried as long as Bitcoin maintained a market capitalization above a trillion dollars. Still, unfortunately, Bitcoin slightly broke the trillion-dollar market capital mark and went down to 943 billion dollars. It calls for concern because things can happen quickly in the crypto space, and it is what we are currently seeing play out.
The markets are shaking because Tesla announced that they would not accept Bitcoin for purchases of their cars. Tesla also stated that they would be keeping their Bitcoin.
Tesla said that they would not accept Bitcoin as payment for cars is not what caused the dip; the real reason is that they said that they would no longer accept Bitcoin because of concerns relating to the climate.
Bitcoin may be using a lot of energy, but the carbon emissions of Bitcoin are low because Bitcoin is run 74% renewable.
If you are panic selling your Bitcoin because of Elon Musk’s tweet, there is a possibility that in five years, you will regret selling your Bitcoin because of a tweet. If your portfolio also cannot survive certain Elon Musk tweets that cause major market dips just like this, there is something that you are not doing right.
It is not like they sold all their Bitcoin; Tesla came out to say that they will no longer accept Bitcoin as payments because of the climate; they are still holding their Bitcoin.
If your portfolio is getting messed up, you have to stop gambling on meme coins, they are high risk, and it is not advisable to take them as serious investments. Another thing you have to do is to stop overleveraging yourself.
Lastly, looking at the Elon Musk and Tesla-Bitcoin saga, we can observe that there is an extreme level of emotions in investment. Emotional investment is one thing business experts, crypto experts, and the sorts warn investors about; there are things you need to keep out of your portfolio.
People are blaming Elon Musk because their portfolio is down, disregarding that they may have entered the market at high peaks, panic sold, or over-leveraged.
People are buying the dip, making use of the opportunity instead of shifting blames and panic selling.
