Bitcoin retreats on cryptic Musk tweet



© Reuters

By Samuel Indyk

Investing.com – 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.

READ  Bitcoin price in critical range, can Chainlink buck the trend? - Crypto News Flash
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





READ SOURCE

LEAVE A REPLY

Please enter your comment!
Please enter your name here