Since the beginning of 2021, Bitcoin (BTC) experienced a surge in terms of its price and market capitalization. The start of the year 2021 for Bitcoin (BTC) was the best it had experienced ever since its launch. However, Bitcoin (BTC) experienced its first price drop on January 10, 2021.
At that point, the price of Bitcoin (BTC) dropped from $40k per BTC all the way down to $30k per BTC. That was the time when the entire cryptocurrency industry believed that Bitcoin (BTC) was going to face the same scenario, it did back in 2017.
Soon, the price of Bitcoin (BTC) picked up and it went on to hit its second all-time high and then again experienced a price drop. The reason behind Bitcoin’s constant rise and fall was the lack of trust the investors had in Bitcoin’s potential.
Many thought that Bitcoin (BTC) was as unreliable as it was back in 2017 and went with the liquidations as soon as Bitcoin (BTC) seemed unstable. Although Bitcoin (BTC) had gained mainstream adoption, still, it awaited the involvement of several major mainstream institutions.
That is when the Securities and Exchange Commission of the US released Tesla’s filing report. According to the report, Tesla had revealed that it had invested $1.5 billion in Bitcoin (BTC). This caused a frenzy all over the cryptocurrency industry, and most importantly, among the mainstream institutions.
Soon, Bitcoin (BTC) experienced the highest rally and for the first time, its price crossed the $50k per BTC mark. This was something that no analyst or economist had anticipated that Bitcoin (BTC) would be able to achieve.
Afterward, whenever the price of Bitcoin (BTC) would experience a drop, Tesla or its founder, Elon Musk would make an announcement. The announcement would again cause a frenzy in the Bitcoin (BTC) industry and several mainstream institutions would flock to the platform.
After Tesla’s initial announcement, the company made yet another announcement. This time, the announcement revealed that it had paid the property owners at one of Tesla’s facilities in Bitcoin (BTC). This again caused a frenzy as right after the announcement; many companies started adopting Bitcoin (BTC) as a payment method.
Then the second last announcement Elon Musk made was to inform everyone that Tesla was accepting payments for its products in Bitcoin (BTC). This resulted in Bitcoin (BTC) hitting an all-time high of $64k per BTC.
However, after a few days, Elon Musk dropped a huge bomb on the entire Tesla consumer community as well as the cryptocurrency community. Musk announced that Tesla has discontinued accepting Bitcoin (BTC) for its products due to carbon emission mined BTC.
He stated that Tesla wants to adopt Bitcoin (BTC) that are mined through environment-friendly sources and not through carbon emissions. While the reason Musk has adopted is authentic, yet it is speculated that Elon Musk did this to drive the price of BTC higher and then dropped it to make hefty profits.