Bitcoin came back from multi-month lows on Wednesday after Tesla (TSLA) founder Elon Musk showed his company could maintain its billion-dollar stake in the top digital currency.
Musk, whose criticism against bitcoin’s energy usage, coupled with a comment that he could sell his $1.5 billion stake in the digital asset, along with a new crackdown from China, sent the cryptocurrency market into its largest downturn of the year this month, with prices lowering to under $30,000.
However, Musk commented on Wednesday on Twitter with “diamond hands” emojis, images that are typically shown as support for a “hold” strategy for certain assets.
Tesla has 💎 🙌
— Elon Musk (@elonmusk) May 19, 2021
Bitcoin was last seen priced at $39,950.00 at mid-day after Musk’s Tweet, after going down as low as $29,995.00 on certain European exchanges, a move that was a 50% decrease from Bitcoin’s all-time record of $64,829.14 on April 15.
Bitcoin has struggled to regain territory after Musk’s remarks last week after he attracted anger within the crypto world when he said Tesla would no longer accept bitcoin — nor increase its $1.5 billion stake — until the crypto developers found a way for Bitcoin to use less energy.
Musk said he was worried about the “quickly increasing use of fossil fuels to mine Bitcoin and process transactions,” citing coal power as the primary controversial problem.