What goes around comes around is a pretty old and rhetorical saying but not without the effect. Most of the crypto world is already caught up with Elon Musk’s story regarding his company Tesla dumping Bitcoin and pinning the whole shenanigan on how the cryptocurrency is a malicious hazard to the environment due its mining practices. Bitcoin mining consumes a lot of fossil fuels such as coal that puts out a substantial carbon footprint which is not suitable for the climate, argues Elon Musk, and thus began the vicious cycle that brought the price of Bitcoin all the way to $42k, which by any means is not a significant number as shortly before that the price was way above the $55k range.
Anyway, given the turmoil Bitcoin seems to be in and Elon Musk’s sudden change of heart despite knowing at the time of purchasing $1.5 billion worth of Bitcoin for Tesla that Bitcoin uses fossil fuels for mining purposes, Tesla’s stocks are now in the whirlpool. Talking strictly about today the Tesla’s stock price has dropped another 4% as the downward trend continues pulling the price from all the way to $900 to $564, which is not great for the company.
Tesla’s Stock and Bitcoin’s Fate Seem to be Pretty Tied
The stock seems to be falling since the last month, accounting for 20% of the total value lost and 12% of which happened in the past five days. The recent Bitcoin crash dragged it all the way down to $42k from the $64 price range. Bitcoin seems to be a part of an ongoing trend where Bitcoin at first continues a steep hike with a bull run, and then the price correction kicks in, cutting Bitcoin’s price viciously, and then it rebounds once again, chartering itself on the course of hitting new all-time highs.
But it might not be your regular push with Bitcoin as the cryptocurrency has taken a reputational hit from Elon Musk, the man who used to back it up the most, and this is not something you come out of that easily. As for Tesla, given its hefty investment into Bitcoin and then ultimately ridding from all of it, the possibility is that investors are giving the company a hard time, but given the excellent mending capabilities of Elon Musk, it is fairly possible that the stock might regain its value in given time.
