Bitcoin retreats on cryptic Musk tweet

© Reuters

By Samuel Indyk – The price of and other major cryptocurrencies retreated on Friday morning after Tesla (NASDAQ:) CEO Elon Musk tweeted about the world’s largest cryptocurrency.

In a tweet, the billionaire posted the word ‘Bitcoin’ followed by an emoji of a broken heart, alongside a meme about ‘breaking up’.

The tweet put the brakes on what had been a mini revival for Bitcoin, which was looking set to reclaim the psychological $40,000 handle. However, after reaching a high around $39,200, Bitcoin dropped back towards $36,000.

Other major cryptocurrencies followed suit, including , which also found some solid resistance at its 50-day moving average. The level comes in at around $2890 which was close to the high print during yesterday’s trading session.

Musk scepticism

Musk has been critical of the energy usage of the Bitcoin network, triggering a sell-off in cryptocurrencies when he said that Tesla would stop accepting Bitcoin as payment for its vehicles.

It is unclear if the latest post from Musk means that Tesla has sold the Bitcoin it holds on its balance sheet, which was around $1.5bln in February when Tesla announced they had purchased the cryptocurrency to diversify their reserves.

The company managed to turn a profit on cryptocurrency sales in the first quarter but Musk has recently said that Tesla would not be selling Bitcoin and they intend to use it for transactions as soon as mining transitions to more sustainable energy.

One of Musk’s other oft talked about digital coins, , has fared little better. At 09:48BST, the meme-based cryptocurrency is down around 13% around $0.36 despite recently becoming available for trading on crypto exchange Coinbase Pro.

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