Bitcoin and cryptocurrency-related stocks are on a wild ride after Tesla (TSLA) CEO Elon Musk lit up Twitter over the weekend with comments suggesting the EV maker may have sold its remaining Bitcoin. Musk later clarified that Tesla has not sold any Bitcoin.
Within hours of his initial comments, Bitcoin fell below $43,000, according to cryptocurrency tracker Coinbase (COIN).
Musk on Sunday responded to a Twitter user who mused that Bitcoin investors would be furious next quarter when they found out Tesla dumped the rest of its Bitcoin holdings. Tesla stated in its last earnings report it had invested $1.5 billion in Bitcoin and sold 10% of its holdings for a $101 million profit.
“With the amount of hate @elonmusk is getting, I wouldn’t blame him,” the user known as @CryptoWhale added.
Musk replied: “Indeed.”
Musk’s posts about Bitcoin came just days after he announced Tesla would halt the use of the digital currency as payment for its cars, citing environmental concerns.
“Tesla will not be selling any Bitcoin and we intend to use it for transactions as soon as mining transitions to more sustainable energy,” he wrote Wednesday night. “We are also looking at other cryptocurrencies that use (less than) 1% of Bitcoin’s energy/ transaction.”
Bitcoin Price Falls
Bitcoin has tumbled in a volatile fashion over the last several days. The Bitcoin price hit a multi-month low of $42,212.56 early Monday, trading above $43,000 around midday. Bitcoin peaked at $64,829.14 on April 16.
Musk’s current take on Bitcoin is a sharp reversal from his months of hyping cryptocurrency all over media. Most recently, he’s promoted another popular meme-inspired digital currency, Dogecoin, asking Tesla owners in a tweet if they would like “Tesla to accept Doge.”
Coinbase, the largest U.S. cryptocurrency exchange, gapped down more than 7% in early trading to a fresh all-time low, but has since regained some of those losses. COIN stock is down 5.3% to 244.75. Coinbase stock hit a record 429.54 within the first minutes of coming public on April 14.
Bitcoin miner Marathon Digital plunged, heading toward its 200-day line. MARA stock is down nearly 10%. Marathon Digital is off more than 60% from its intraday high of 57.75 on April 6. The company has a top-notch RS Rating of 99, while its EPS Rating is 57.
RIOT shares tumbled 13% Monday. Riot Blockchain stock has lost nearly two-thirds of its value since it hit a high of 61.15 intraday on April 15. The company also has an RS Rating of 99 and an EPS Rating of 57.
Meanwhile, Tesla stock fell 2.3% Monday, back below its 200-day line. TSLA stock briefly reclaimed its falling 50-day moving average on April 30, but since then has sold off hard, according to MarketSmith chart analysis.
Since hitting an all-time high of 900.40, achieved intraday on Jan. 25, Tesla stock has lost more than 30%. The relative strength line is trending lower, at its lowest levels since late November. Its RS Rating is 90, while its EPS Rating is 74.
Musk arrived in Berlin on Monday, presumably to visit Tesla’s factory in the area. Jorg Steinbach, Brandenburg’s economics minister, confirmed Musk’s visit. Steinbach tweeted that the purpose of the visit is mainly technical in character and political meetings have not been scheduled.
The Tesla Berlin plant has faced various hurdles, including regulatory delays. The European facility reportedly won’t open until early 2022 vs. initial plans for a July 2021 open.
Follow Adelia Cellini Linecker on Twitter @IBD_Adelia.
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