Bitcoin’s critical crash occurred despite all factors, both technical and fundamental. The only reason is market manipulation.
Bitcoin dropped from $54.5K by 12% to $47.8K in 3 hours on the night of May 12-13. Previously, analysts promised a smooth decline or sideways movement, but not a crash. The reason for the collapse is a new manipulation by Elon Musk and his Tesla company.
Musk boldly invades the cryptocurrency market. To avoid criticism, he hides behind Tesla, and says that the company’s decisions are made without his participation. Musk has now announced that Tesla will stop selling cars for Bitcoin.
The reason is allegedly that electricity used to mine bitcoin is generated from fossil fuels, including coal, which gives the maximum emissions. Musk said Tesla is now considering other cryptocurrencies that use less electricity. Super-entrepreneur notes:
– Tesla has suspended vehicle purchases using Bitcoin. We are concerned about the rapidly increasing use of fossil fuels for Bitcoin mining and transactions, especially coal, which has the worst emissions of any fuel. Cryptocurrency is a good idea on many levels and we believe it has a promising future, but this cannot come at great cost to the environment.
The point of this post for investors is to shift funds into altcoins, which Musk is constantly pumping. These are worthless Dogecoin (DOGE) and Shiba Inu (SHIN) coins that run on the energy-consuming Proof-of-Work consensus, just like bitcoin runs.
However, confused investors may not pay attention to this. Due to verbal interventions and massive PR campaigns, Dogecoin has grown by 27,000% over the year. It is highly likely that Musk will make DOGE the leading cryptocurrency. To surpass bitcoin, DOGE needs to grow another 1,700%. Now it no longer seems impossible.
Musk becomes the Enfant terrible of the cryptocurrency market. However, some analysts believe that the market can withstand Musk’s manipulation and not collapse. According to an analyst with the nickname Dilution Proof, the current BTC collapse is just a jump in BTC dynamics.
Most inexperienced novice investors were caught by Musk’s trap, they began selling bitcoin in a panic (“a sizable portion of the Bitcoin that was transacted during the sell-off likely came from new market entrants”). The drop only contributes to the fact that bitcoin will go from weak hands to strong holders, and its growth will continue (“an event designed to transfer BTC from weak hands to strong holders”).