Backlash to Elon Musk’s Bitcoin bombshell as traders start to buy the dip

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With Tesla’s suspension of Bitcoin payments causing chaos in crypto markets today, critics have targeted CEO Elon Musk’s chivalrous attitude to the dramatic effects his words and actions can have on the sector.

On May 13, Tesla and Musk announced that it had stopped accepting BTC as a payment for vehicles due to concerns about the “rapidly growing use of fossil fuels for mining and transactions of Bitcoin, especially coal.”

In response to the news, Bitcoin dropped 15% in less than three hours, falling from nearly $ 55,000 to $ 46,600. Bitcoin’s “Index of Fear and Greed” also swung aggressively from yesterday’s greedy score of 68 to a frightening score of just 31 today.

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Bitcoin Fear and Greed Index

Tesla’s decision to accept BTC as payment for its vehicles in late March was viewed as a major factor in Bitcoin’s most recent rally in new highs near $ 65,000 in mid-April. Many disappointed Bitcoinists now accuse the automaker and its CEO of executing an elaborate “pump”.

In an “urgent press conference,” sometimes cryptocurrency trader and founder of Barstool Sports, Dave Portnoy, claimed that Musk “was just trying to supply Bitcoin,” declaring:

“[Musk] pulled the levers like the Wizard of Oz on a crypt, and everyone follows his every move – he sends Dogecoin up, he sends Bitcoin down, this sucks […] Elon, you have a responsibility when one second you say to buy something, and the next second you don’t – that plays with people’s future and their wealth. “

He asked, “How can you live with yourself?”

Adrian Przelozny, director general of the Independent Reserve, told Cointelegraph that Tesla’s move was “disappointing”.

“However, we have seen Bitcoin receive all sorts of bad news over the years, as governments have banned its use. And despite that, Bitcoin has always recovered and grown to new highs,” he said.

“In the long run, I’m still very optimistic about Bitcoin and don’t believe this announcement will significantly affect price or adoption.”

Buy the dip?

Yet others conclude an opportunity in the markets, with many advanced crypto analysts wanting Twitter to brag about buying the dip.

William Clement III tweeted to his 58,700 followers that the dip “will be regarded as one of the largest bull market buying opportunities in the history of BTC.”

Blockstream co-founder Adam Back stated: “Buying the dog tweeter soak. Thanks for all the satisfactions. “Morgan Creek Digital founder, Anthony Pomplino, similar announced“I bought the dip. Thank you Elon,” adding:

“Elon did not sell his Bitcoin. He and I are both still long. Same team. “

Bitcoin fell to just over $ 47,100 after the news, but has since recovered to $ 50,450 at the time of writing.

Mira Christanto de Messari expressed skeptical on the long-term impact of Tesla’s decision, emphasizing that, “Tesla still holds BTC in its balance sheet” and challenges Tesla’s claims about the impurity of Bitcoin mining.

Christanto shared known published by financial services firm Square last month titled “Bitcoin is Key to an Abundant, Clean Energy Future,” which argues that the mining sector is pushing for demand for cheap renewable electricity.