Bitcoin takes a hit as Tesla may shed holdings for cryptocurrency

After Elon Musk’s “indeed” response to a Tweet suggesting that Tesla may have dumped or already sold its cryptocurrency holdings, Bitcoin slid about 9% on Sunday. 

Tesla has initially bought $5 billion worth of bitcoin and announced about its intentions of accepting it as payment for its cars in February. 

On the 12th of May, Musk announced that the electronic vehicle company would stop accepting bitcoin as payment because it fears that its use of “insane” energy is proving to be harmful to the planet. 

Since the week of the CEO’s announcement depicting his ‘U-turn’, bitcoin has fallen over 20%. It recorded a maximum of about $6300 earlier this year. 

In the first quarter earnings meeting the company claimed to still have $1.33 billion in digital assets on its balance sheets. 

Apart from cryptocurrency, Tesla’s CEO, Elon Musk’s attention has also fallen towards dogecoin which led him to make a huge endorsement towards it.