BTCUSD - Elon did it again ... But why ???

Yes folks ... he did it again ... with a simple tweet Elon Musk has manipulated the market once again ...

The contents of his tweet :

"Tesla has suspended vehicle purchases using Bitcoin. We are concerned about rapidly increasing use of fossil fuels for Bitcoin mining and transactions, especially coal, which has the worst emissions of any fuel.

Cryptocurrency is a good idea on many levels and we believe it has a promising future, but this cannot come at great cost to the environment.

Tesla will not be selling any Bitcoin and we intend to use it for transactions as soon as mining transitions to more sustainable energy. We are aslo looking at other cryptocurrencies that use <1% of Bitcoin's energy/transaction"

Immediately after the Tweet went public, Bitcoin dropped significantly ... but what is behind the tweet? 🤔

While we can't know for sure, here is what I personally think happened (note that this is my personal opinion):

► Ever since Tesla announced that they'd be accepting Bitcoin as payments for their cars, they have suffered backlash and negative publicity from environmentalists outraged by the fact that a "green" company like $TSLA would get involved in such a polluting industry as bitcoin.

► This might have had an impact on the opinion of some of the board members, pressured by #TSLA share holders to steer away from this decision.

► Another potential reason is that @elonmusk talking about crypto all the time has diverted interest from buying #TSLA stock towards crypto, causing TSLA stock to drop ...

In any case, the market reaction to the tweet is, to say at the least, ridiculous imho ... for the reasons below

► Tesla is not selling their BTC
► Tesla not accepting BTC for payments does not change the environmental impact of BTC mining a single bit (I feel it's just throwing sand in the eyes of the environmentalists who now think Tesla did the right thing)
► If the issue is related to Tesla stock, then just tell your CEO to stop his crypto tweets ...

Is it conceivable to think that
► TSLA sold some more BTC before announcing this news
► Elon bought some more BTC after the dip?

I would not be surprised ... but what do you think? Let's open the discussion in the comments below.
Oh, and don't forget to "smash that 👍🏽 button"!

✌🏽
PS: Still bullish on BTC ;)

Comment:

By the way, if you are wondering what will be the longer term impact of this on BTCUSD ... then I'll tell you that it changes absolutely nothing ;)
This analysis is still valid ...

Comment:

Many say that the market was due for a drop and I agree, my only observation is that the tweet and the drop correlate in time and thus initiated, and probably accelerated the drop.

While many seem to have understood that the main purpose of this publication was to accuse Elon Musk of manipulating the market and whether he caused the drop or not, the real question was actually why he/Tesla went "all in" on BTC to then change their mind about accepting BTC for their cars.

That debate is still open ...