Musk went on to say that after the 10% sale in Q1, his firm hasn’t sold any additional Bitcoin. The transaction, according to the CEO, was undertaken to ensure that Bitcoin had liquidity.
The firm claimed at the period that Bitcoin had demonstrated this, with the sale being quick and unobtrusive. Tesla was first afraid that this would cause the market to fall.
It’s uncertain how Elon Musk would corroborate this, given that a lot of Bitcoin users currently believe the currency is eco-friendly. The debate about the level of environment friendliness of Bitcoin mining is likely to continue to divide Musk and the Bitcoin community.
Furthermore, several industry leaders have theorized in the past that Tesla shareholders persuaded Elon Musk to stop accepting Bitcoin as payment.
Kevin O’Leary, a serial entrepreneur and Television personality, stated:
“I feel Elon was pressed to talk out about this by Tesla investors since they work with sustainability groups and are opposed to Bitcoin being used as a currency to purchase Tesla vehicles. As a result, they most likely put pressure on him to make the remark he did.”
This is inaccurate. Tesla only sold ~10% of holdings to confirm BTC could be liquidated easily without moving market.
When there’s confirmation of reasonable (~50%) clean energy usage by miners with positive future trend, Tesla will resume allowing Bitcoin transactions.
— Elon Musk (@elonmusk) June 13, 2021
Despite the uncertainties, the market has reacted favorably to this news. Bitcoin has increased by over 10% since the beginning of the week. Bitcoin is attempting to breakout with a target of $40,000 at the time of writing this article.
This will be a big challenge for the asset, as it will determine the short-term direction. Bitcoin can surge higher and convert the $40,000 level as support if bulls can fight the selloff. If selling pressure persists above this level, Bitcoin will crack and retest its previous lows.