With the latest statement from Elon Musk about Bitcoin energy use concerns, he raised big turmoil about the whole situation with Bitcoin.
Bitcoin in the last period
Bitcoin had some big drops in 2021. Almost every single one of these was provoked in some indirect way, as China starts to limit crypto mining and now Elon Musk raising concerns about the energy spend. But what effects on Bitcoin could possibly provoke this latest affair.
We separated those effects into two groups. Direct and indirect ones:
As with almost any controversial statement by Elon Musk, this one too will gain huge attention from the public. It is very possible to expect a huge drop in Bitcoin usage, which will undoubtedly affect its value. (something similar that happened to Dogecoin)
The inflation peak this year also affected the crypto market. In some way this could be seen as the intro into the upcoming “crypto winter”, and this affair could make Bitcoin very vulnerable to it.
However, the situation in the next period should be followed carefully. Musk is well-known for such moves, so he can use the situation to his advantage. This particular one could be seen as the try to drop the price of Bitcoin, and to buy it for lower, but later sell it for more, when its price reestablish. If you want to find out more you can check here.