Bitcoin Plunges Below $ 45K After Tesla Makes Selling Tokens.

By: Bharggavi Ssayee

May 18, 2021 1:45 AM

After Tesla decided to put Bitcoin payments on hold, the possibility of selling was not yet to be considered, according to the company's statement. However, through an exchange between the boss of Tesla and other tweeters, the option to sell the $ 1.5 billion acquired in February is quite plausible.

To this end, on Sunday, the cryptocurrency lost 8% of its market value and plunged below $45,000. A terrible fall for Bitcoin, which recorded its worst level in nearly three months.

Elon Musk: Great Bitcoin Traitor

In fact, criticism is raining about the behavior of Elon Musk after his turnaround against Bitcoin, which has carried digital currencies well this year. The ecological reasons that Musk put forward for his withdrawal from Bitcoin do not seem to convince many of his followers who see him as a traitor.

His response to user @CryptoWhale further fueled follower hatred as it reportedly confirmed his willingness to get rid of Bitcoin. Indeed, the user had posted:

“Bitcoiners are going to slap themselves next quarter when they find out Tesla has thrown away the rest of their holdings in #Bitcoin. With the amount of hate @elonmusk receives, I wouldn't blame him… ”

Musk replied: "Indeed"

The Musk Effect, which had been a driving force behind the Bitcoin price earlier this year, now looks like a bulldozer that seeks only to destroy cryptocurrency.

CNBC News featured in its Sunday issue a message from Fred Wilson, a founding partner of Union Square Ventures:

He plays games. It's hard to take someone who does this seriously. I've lost a lot of respect for him over the past year because of it.

The other cryptos have also suffered from the news!

As is often the case when Bitcoin is hit by a bearish wave, other cryptos suffer. Indeed, altcoins have also plunged on the stock market. Ethereum saw its price drop nearly 6%. Smart contract crypto has plunged below $3,500. The DOGECOIN, which was thought to be able to benefit from this situation, was also swept on the stock market. It has lost almost 9.6% of its value.

Even Cardano and Polygon Matic which were at their highest levels could not withstand the bearish wave. Cardano has shrunk by 5%. XRP, despite its partnership with leaders in the field of sustainable development suffered a decline of 10.94% in the markets.

Is this the beginning of the end of Bitcoin?

After hiding on the technical weight of $60K along with these bearish movements of the past few days, the question of the possible extinction of Bitcoin is coming back to the markets. In reality, we are light years away from this scenario as long as Bitcoin has established itself as a staple asset on the stock market. Simon Peters, an eToro analyst said: “For many crypto-assets such as Bitcoin and Ethereum, the long-term story has not changed.”

Certainly, the bearish momentum of Bitcoin depends on the Musk effect, but one should never forget that the cryptocurrency market operates 24/7 and that these volatility movements are very common during weekends.