The Bitcoin price plunged after Elon’s tweet. However, the sell-off was an opportunity for Michael Saylor to add to his collection, buying 271 more coins.
It was a battle of the billionaires in Bitcoin land yesterday. The market suffered heavy losses after Elon Musk Tweeted about the damaging effects of crypto mining on the environment. Cryptocurrency Industry titans were quick to counter his argument. .
Michael Saylor, who runs the business intelligence firm Microstrategy (MSTR), put his money where his mouth is, adding another $15 Million worth of Bitcoin to the company’s holdings.
This recent purchase brings Microstrategy’s total position to 91,850 coins at an average Bitcoin price of $24,403.
At the current price of $49,000, the firm has just over doubled its money, with the position showing a profit of $2.26 Billion.
Saylor also addressed Musk’s argument that Bitcoin mining is heavily reliant on fossil fuels:
“Ironic because no incremental energy is used in a #bitcoin transaction. The energy is used to secure the crypto-asset network, and the net impact on fossil fuel consumption over time will be negative, all things considered.”
The Winklevoss twins backed up his view.
Cameron: “bitcoin mining is actually pushing the renewable energy industry forward”
Tyler: “Bitcoin mining is a massive subsidy for renewable energy.”
Bitcoin Price Outlook
The Bitcoin price is clearly reflecting the polarized views of investors. It’s undergoing a period of price discovery around the $50,000 level.
The Psychological level was pretty much mid-point of yesterday’s range, and the market closed just short of it, at $49,690.
The price action has, so far, been similar today. The market has traded between $48,995 and $50,439 and seems undecided about where it heads next.
On the one hand, we are seeing some of the technicals pointing lower. On the other hand, it appears that the lower prices may encourage more long-term bulls to add, which could see the dip bought once more.
Therefore the best course of action at the moment may be to wait for a clear opportunity. Overall, I remain optimistic about the Bitcoin price and believe that we could see it much higher over time. Nonetheless, the price may get cheaper in the near term.
If the market fails to recover the $50k mark, there is a possibility that it could return to the previous all-time high set in January 2021. That move would see the price fall by over $7,000 to $42,000.
If the Bitcoin price can consolidate and build a base above $50,000, it could target the 100-Day Moving average at $53,785.