The central theses
- Tesla CEO Elon Musk tweeted that his company had “diamond hands,” implying that Tesla will not sell its Bitcoin holdings.
- Musk’s statement comes after a crash in the cryptocurrency market that brought Bitcoin prices down to $ 30,400.
- Justin Sun from TRON and Michael Saylor from Microstrategy also announced their commitment to holding Bitcoin.
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After today’s crash in the cryptocurrency market, Tesla CEO Elon Musk tweeted that his company had “diamond hands”.
Tesla has 💎 🙌
– Elon Musk (@elonmusk) May 19, 2021
Tesla will hold up despite the crash
Musk’s statement implies that Tesla intends to maintain $ 2.5 billion worth of Bitcoin despite the asset’s falling price.
Today’s decline was apparently motivated by China’s decision to restrict crypto payments. Within a few hours, Bitcoin fell to $ 30,400, a low that has not been hit since late January. Although prices have partially rebounded to $ 38,000, the coin is still well below last week’s high of $ 50,000.
Musk’s tweet is relevant given that its crashes and comments have been blamed for previous crashes.
On May 12, Musk announced that Tesla would stop Bitcoin payments due to the high energy consumption of the coin. That news caused Bitcoin to crash from $ 57,000. Prices keep falling.
Additionally, Musk’s recent appearance on Saturday Night Live failed to attract cryptocurrency investors. Instead, the price of Dogecoin fell about 30% after a professional Musk investor kit that appeared to disappoint investors.
Other whale investors will hold
Musk isn’t the only one to announce that he and his company are holding crypto assets in the middle of a market crash.
Justin Sun, CEO of TRON, announced today that he has purchased $ 289 million worth of BTC and ETH. Meanwhile, Microstrategy CEO Michael Saylor has tweeted that his business units hold 110,000 BTC ($ 4.2 billion) and have not sold any of those holdings.
These big investors could help keep cryptocurrency prices relatively high and combat future price drops on the horizon.
Disclaimer: At the time of writing, this author held less than $ 75 in Bitcoin, Ethereum, and Altcoins.
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