For those plucking petals off of a daisy to find whether Tesla magnate Elon Musk will fall back in love with Bitcoin, new reports today show that there is a pathway forward.
For context, Musk bought $1.5 billion worth of bitcoin for Tesla in March, but sold part of that stake in April.
Now, Musk is saying that the company sold the portion of the stake to “prove the asset’s liquidity” and understand how it would work in managing capital reserve assets.
However, some took that as a market sign that Musk was uncommitted to Bitcoin. That’s partly because at around the same time, Musk was going back on his prior assertion that Tesla would accept payments from customers in Bitcoin.
On May 12, he tweeted that Tesla would NOT accept such payments.
That, many say, set Bitcoin prices spiraling downward, and we saw close to $30,000.
This morning, Bitcoin is back up over $40,000 in an amazing breakthrough.
“Bitcoin (BTC) held support at around $34,000 over the weekend and is approaching resistance at $40,000-$42,000,” reports Damanick Dantes at Coindesk. “The world’s largest cryptocurrency has been consolidating for nearly a month as buyers established a solid base at $30,000. A breakout from the range would yield further upside toward $50,000. Sellers, however, remain in control given the strong overhead resistance.”
Why the higher prices? Part of the reason might have to do with the Bitcoin Mining Counsel, which is apparently only a few days old.
Microstrategy executives and others who want to blaze a trail for Bitcoin have had informal meetings throughout the past month, and now they’re trying to formalize something with critics of Bitcoin’s energy dependence.
The bottom line here is that if Bitcoin fans can persuade Musk that Bitcoin is committed to new green energy processes, Bitcoin will be back in Tesla’s good graces and likely to emerge more fully in today’s financial world.
