[Bitcoin Now] Musk's Statement on Bitcoin Payment Suspension Causes Sharp Drop to 60 Million Won Range

Tesla CEO Elon Musk: "Bitcoin Payment Service on Hold Due to Environmental Issues"
Speculation Arises That Bitcoin ETF Launch in US Stock Market This Year Is Difficult

[Image source=Yonhap News]

[Asia Economy Reporter Gong Byung-sun] Bitcoin, the representative cryptocurrency that had rebounded to the 70 million KRW range the previous day, sharply dropped to just before breaking below the 60 million KRW range. This was triggered by Elon Musk, CEO of Tesla, announcing the suspension of vehicle purchases using Bitcoin, which acted as a negative factor.

According to the domestic cryptocurrency exchange Upbit, as of 2:31 PM on the 13th, Bitcoin recorded 63.56 million KRW, up 2.1% compared to the previous day. Earlier that morning, it had fallen to as low as 60.2 million KRW.

Tesla’s suspension of Bitcoin payment services had a negative impact. On the 12th (local time), CEO Musk stated on Twitter, “Tesla is concerned about excessive fossil fuel usage due to Bitcoin mining and transactions,” adding, “Since it does not help the environment, we will suspend Bitcoin payment services.” Previously, on February 9, Tesla had announced that Tesla products could be purchased using Bitcoin.

Investors strongly opposed CEO Musk’s move. In the past, Musk had mentioned that Bitcoin was beneficial to the environment, but he reversed this stance. On the 22nd of last month, Twitter CEO Jack Dorsey said on Twitter, “Bitcoin advances the renewable energy industry,” to which Musk replied, “That’s true.” Additionally, on the 10th, SpaceX, where Musk also serves as CEO, announced plans to use Dogecoin as a payment method, despite Dogecoin being known for lacking technical value and issuance limits, leading to criticism of inconsistency.

There are also predictions that launching a Bitcoin exchange-traded fund (ETF) on the U.S. stock market within this year will be difficult. According to cryptocurrency-focused foreign media Coindesk on the 11th, the U.S. Securities and Exchange Commission (SEC) stated, “Bitcoin is a highly speculative asset.” Previously, on the 28th of last month, the SEC postponed the decision on approving the Bitcoin ETF application by U.S. asset management firm VanEck to the 17th of next month. Ben Jones, head of ETF research at U.S. investment research firm Morningstar, explained, “Recently, SEC Chairman Gary Gensler emphasized the necessity of investor protection for those participating in the cryptocurrency market,” adding, “Considering the SEC’s statement and Chairman Gensler’s remarks, approval of a Bitcoin ETF within this year seems unlikely.”