If you pay attention to the stock and crypto market in even the slightest bit, then you must have noticed the huge run-up the crypto market has made in the past few months. However, these euphoric green charts for bitcoin and the other cryptos have halted the past couple of weeks, and Elon Musk has been a big catalyst for this. After announcing that bitcoin will be accepted as a form of payment for Tesla just a few weeks ago, Elon changed his mind and made a tweet saying that Tesla will temporarily no longer accept Bitcoin.
Along with that, Musk said Tesla will refrain from selling any of the $1.5 billion bitcoin the company has accumulated since they started purchasing it. The reason for this change of heart is because of the “rapidly increasing use of fossil fuels for Bitcoin mining and transactions.” Some Bitcoin investors saw this as bad news, which is why they saw this sell-off. Others were not bothered by this comment because Elon went on to say, “Cryptocurrency is a good idea on many levels, and we believe it has a promising future.” This is good news for long-term holders of the coin, but turbulent times for the short term still do seem likely.
With Bitcoin taking a hit, the rest of the crypto market has to overcompensate for their losses but is this the beginning of the crypto crash like we saw back in 2018? The short answer is that it is too early to tell. However, whether the market drops another 10% or even 80% from here, it is foolish to think that cryptocurrency is not the future. It is revolutionizing technology and has much more room to grow. With that being said, there is no need to worry if you are in it for the long run, as these short fluctuations are minuscule in the bigger picture.