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Elon Musk may have egg on his face after his claims practically erased all of his company’s profits from Bitcoin purchases.
Bitcoin (BTC) plunged below $40,000 on May 19 as bearish speculation continued to dictate price course, resulting in a $350 billion loss in the cryptocurrency sector.
Analysts calm as BTC/USD hits 15-week lows
Data from TradingView tracked BTC/USD as it put in lows of $38,500 before bouncing higher.
Following a week of consecutive losses, Wednesday’s decline brought Bitcoin to its lowest level since early February and 40% below its all-time peak.
“Bitcoin putting in new lows, probably buy more soon,” popular trader Scott Melker told Twitter followers in a post that characterized the conversely calm mood among market veterans.
As reported, those closer to the data were anything but bearish throughout the week, and even a sub-$40,000 BTC price failed to dampen their spirits.
“16,835 Bitcoin withdrawn from exchanges in last 10 minutes,” analyst Lex Moskovski noted at the time of writing.
“Someone’s buying fear.”
Tesla blows its Bitcoin fortune
Elon Musk, the CEO of Tesla, remained the centre of attention elsewhere. Following his acceptance of responsibility for the recent instability, Musk was generally regarded as having cost himself and his business more than any others with his remarks.
With a return of less than $40,000, Bitcoin sold almost at the same price on Wednesday as Tesla purchased $1.5 billion.
Its announcement came on Feb. 8, a matter of weeks after a likely transaction took place. Nonetheless, its profits from its BTC, which at one point totalled more than its entire history making electric cars, evaporated.
“We are back at Feb 8 open price of $39K, when Tesla made the bitcoin announcement,” stock-to-flow model creator PlanB summarized.
According to monitoring resource Bitcoin Treasuries, Tesla’s stash was worth just over $1.72 billion at the time of writing.
PlanB had been one of the most vocal critics of Musk, being joined by figures such as Saifedean Ammous, author of The Bitcoin Standard.
Bitcoin is down 20% since @ElonMusk started shitposting.
And you wonder why some people are mad? 🤔 pic.twitter.com/WDMvcptFsK
— Bitcoin Archive 🗄🚀🌔 (@BTC_Archive) May 16, 2021
For his part, Musk had confirmed that Tesla had yet to sell any of its allocation.