Bitcoin Price Rises After £ 300 Billion Disappears As Elon Musk Says Tesla Has ‘Diamond Hands’ | City and business | Finance
Over the past week, the digital currency, which had reached over $ 50,000 (£ 35,432.90) at the start of the month, saw its value plummet, with £ 300 billion wiped out in 24 hours. Bitcoin traded at $ 34,925.80 (£ 24,723.10), its lowest since February. Over the past hour, Bitcoin has continued to soar and rose to $ 41,622 (£ 29,473.16), according to CoinDesk.
However, Mr Musk apparently both caused the crash and helped restore it, with Bitcoin remaining firm at around $ 40,000 (£ 28,315) overnight.
It comes after Mr. Musk tweeted how “Tesla has [diamond hands]”using a diamond emoji and waving your hands.
According to reports, emojis refer to a meme in which holders of specific assets – such as cryptocurrencies and stocks – make it clear that they keep them.
This tweet means that Tesla has no plans to sell its shares in cryptocurrency, helping restore Bitcoin after its crash.
Bitcoin’s drop in value came after Mr Musk announced that Tesla would temporarily not accept digital currency as a form of payment for vehicles.
He said: “We are concerned about the increasing use of fossil fuels for Bitcoin mining and transactions, especially coal, which has the worst emissions of all fuels.
“Cryptocurrency is a good idea … but it can’t cost the environment dearly.”
But his latest tweet apparently shows that the CEO of Tesla has lifted the temporary blockage on digital currency as payment.
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“A lot of the income comes from crypto lending, asset lending, and it’s just going to increase, despite the declines this week.”
Paolo Ardoino, CTO of Bitfinex, added: “As a blockchain financial application, bitcoin has become an enduring and battle-proven force.
“Those who take comfort from a sea of red today should remember that they come from a very different generation than the one who will use this technology in a way that brings financial freedom to so many.
“Bitcoin’s steel has been sharpened under the most adversarial conditions of the open public Internet.
“Critics who celebrate what they perceive as a crypto collapse exhibit the worst features – associated with schadenfreude – towards technology elegant in its brilliance.
“Those who don’t and refuse to get it will be wrong.”