Tesla Lost All Profit When Bitcoin Fell To $ 30,000, Elon Musk Rushed To 'Breathe' To Stop The Plunge

It seems that thanks to Musk's 'assurance' statement, the Bitcoin price immediately recovered slightly to the threshold of $ 40000 (as of 0:00 on May 20), according to data of the exchange Binance.

In a tweet on Wednesday night (May 19, Vietnam time), Elon Musk posted the message "Tesla has a Diamond Hand". The tweet implies that the electric vehicle maker will not sell its $1.5 billion worth of Bitcoin, but instead continue to "hold" for a long time, according to CNBC.

Notably, the above tweet of Elon Musk came right when Bitcoin had a huge drop on the evening of May 19. At one point, the price of Bitcoin fell to the threshold of 30000 USD. However, it seems that thanks to Musk's 'assurance' statement, the Bitcoin price immediately recovered slightly to the threshold of $ 40000 (as of 0:00 on May 20), according to data of the exchange Binance.

Worth mentioning, Bitcoin's plunge to this price has wiped out nearly all of Tesla's profits since entering the crypto market (in case Tesla didn't sell any Bitcoins). In February 2021, Tesla then spent $1.5 billion to own 43,000 BTC, with an average purchase price of about $34,800. Just a few months later, Tesla's profits almost doubled when Bitcoin peaked at $64,000.

However, the sharp decline in the price of Bitcoin in a short time caused Tesla's profits to "evaporate" quickly. Even if Bitcoin's decline continues below $30,000, Tesla may fall into a "swing top". In fact, many crypto investors on the social network Twitter claim that Elon Musk's latest tweet is only to help Bitcoin reverse, indirectly helping Tesla's investment not to lose.

Earlier, on May 12, Elon Musk said that Tesla had suspended the purchase of cars with Bitcoin, because of concerns that the process of mining this cryptocurrency would have an impact on the environment. Immediately following this statement, $300 billion in crypto market capitalization was evaporated on the same day. Over the weekend, Elon Musk also hinted on Twitter about Tesla being able to sell Bitcoins that made the price of Bitcoin 'lower and lower'. Although Elon Musk later clarified that Tesla had no intention of selling Bitcoin, the cryptocurrency market went into a state of continuous decline in value.

Most recently, the Bitcoin drop took place on the morning of May 19 after it was reported that the People's Bank of China (PBOC) reaffirmed its stance not to accept any form of payment in cryptocurrencies. . It was this bad news that added a 'fatal punch' to Bitcoin, causing a series of investors to panic and sell.