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Bitcoin Rebounds After Tesla & Elon Musk Triggered Selloff

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The most popular cryptocurrency, bitcoin (BTC), recovered some of its sharp losses, fueled by Tesla‘s supremo Elon Musk as the car manufacturer said it has suspended vehicle purchases using BTC and is looking at other cryptoassets.

BTC plunged from almost USD 55,000 to USD 47,600, before recovering higher again. At 05:13 UTC, it trades at USD 50,621 and is down by 11.5% in a day. Other coins from the top 10 club have also followed a similar path and are now down by 8%-16% in the past 24 hours.

“We are concerned about rapidly increasing use of fossil fuels for Bitcoin mining and transaction especially coal, which was the worst emissions of any fuel,” according to a screenshot, shared by Musk on Twitter.

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It added the company still believes cryptocurrency is a good idea and has a promising future, “but this cannot come at great cost to the environment.”

Tesla said it won’t be selling any BTC it holds and intends to use it for transactions “as soon as mining transitions to more sustainable energy.”

However, in April, Musk agreed that BTC “incentivizes renewable energy.”

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Tesla started accepting BTC in March this year.

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Some commenters speculate that this decision to suspend BTC payments might be related to subsidies Tesla is receiving from the US government.

Also, just yesterday, Reuters reported that Tesla is seeking to enter the multi-billion dollar US renewable credit market, hoping to profit from the Biden administration’s march toward new zero-emission goals.

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