Cryptocurrency markets have been heavily affected by Elon Musk’s tweets recently. First came the accusations of Bitcoin consuming “insane” amounts of energy last week. The debate and sell-off were triggered by Tesla’s decision to cancel vehicle purchases using Bitcoin due to the high carbon footprint of each transaction.
BTCUSD crashed almost 13% on Wednesday.
Tesla & Bitcoin pic.twitter.com/YSswJmVZhP
— Elon Musk (@elonmusk) May 12, 2021
On Monday, BTC dropped further below the critical $45,000 resistance after another tweet by Elon Musk.
— Elon Musk (@elonmusk) May 16, 2021
The tweets and the following price action sparked an avid debate on the environmental impact of cryptocurrencies. Altcoins with more energy-efficient protocols gained. While Bitcoin plunged, Ethereum kept a low profile and quietly managed to stay above $3,400 resistance, and is still up 26% in May, which is a good sign for ETH bulls.
On the contrary, Litecoin was among the altcoins hit heavily by the BTC drop. LTCUSD crashed by over 25% last week and is trading below $290 on PrimeBit at the moment. Traders who decided to short Litecoin with 200x leverage made fantastic gains over time.
Keep an eye on Litecoin, as some analysts predict we may see an explosive rally soon. Although Litecoin dropped out of the top 10 cryptocurrencies by market capitalization, it is still one of the best assets for crypto margin trading.