Tesla Discontinues Acceptance of Bitcoin Payments for Vehicles
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Billionaire CEO of Tesla, Elon Musk, has announced via a Twitter post that Bitcoin (BTC) payments will no longer get accepted by the behemoth electric vehicle manufacturer for its vehicles.
In a tweet published yesterday, Musk cited Bitcoin’s immense energy consumption as the reason for the payment suspension.
Tesla announced in February that it purchased $1.5 billion worth of BTC and hinted at the possibility of Bitcoin payments for its vehicles. The company followed through with its promise in March when it revealed that customers could make payments for vehicles using BTC.
However, Tesla’s decision to accept Bitcoin ignited significant criticism from environmental conservationists who argued that the move was contradictory to the electric vehicle company’s stance to manage global emissions.
Although there is no clear consensus on Bitcoin’s energy usage, many critics like to finger the benchmark cryptocurrency as a contributor to the “ocean boiling” narrative.
Musk tweeted to his 54.2 million followers that:
“Tesla will not be selling any Bitcoin, and we intend to use it for transactions as soon as mining transitions to more sustainable energy.”
“We are also looking at other cryptocurrencies that use <1% of Bitcoin’s transaction/energy.”
Bitcoin saw an immediate $3k plunge at the drop of the announcement, which opened the door for additional declines towards the $45k level.
Key Bitcoin Levels to Watch — May 13
Musk’s tweet effectively veered Bitcoin off its recovery track, sending the cryptocurrency to the $45k level. At press time, BTC has recovered by about 14% and trades at the $51k area.
The overnight plunge pushed Bitcoin into oversold territory, indicating that a bullish recovery could occur over the coming hours. This development presents a perfect dip-buying opportunity for traders.
Meanwhile, our resistance levels are at $52,000, $53,000, and $54,000, and our key support levels are at $50,000, $49,500, and $48,300.
Total Market Capitalization: $2.30 trillion
Bitcoin Market Capitalization: $949 billion
Bitcoin Dominance: 41.2%
Market Rank: #1
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