The Bitcoin (BTC/USD) price nearly hit $65k around April 14th, which was more than a month ago, at this point. Since then, however, the coin has been moving down, spending a lot of time at the support level at $48k, only to briefly go up to $58k once again, and then, over the last week, it crashed by over 30%, currently sitting at $39,500.
The crash came following Elon Musk’s appearance at SNL, or rather, his statement that came a day or so after the show. Musk said that Tesla will stop accepting BTC as a payment method for their electric cars due to the fact that Bitcoin mining is too impactful on the environment. Basically, BTC is not green enough.
Mike Novogratz shares his views on the situation
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Commenting on the drop and this statement from Tesla, Galaxy Digital CEO, Mike Novogratz, said that this kind of behavior should not be surprising. There were some staggering moves on the positive side of things that brought BTC to heights that many would not dare imagine. Even its current price is twice the size of its 2017 record, and this is BTC that has crashed 30% in one week.
The markets move up and down, according to Novogratz, and they do get ahead of themselves, which causes corrections. Crypto and blockchain are still being adopted by institutions and retail traders alike, so there is no reason to worry.
As for the ESG (Environmental, Social, and Governance) side of things, Novogratz confirmed that they are real and that they will be addressed. However, when asked about how quickly that can be done, Novogratz pointed out that, yes, Bitcoin uses a lot of electricity, but so do many other things that are worth something. The crypto ecosystem, which includes Bitcoin, is an important part of the future of finance, and so it should cost something, as he put it.
However, he says that people are already working on making it as carbon-neutral as possible, and more people will join to make it happen in time. He further noted that all electricity in 6-7 years will be green anyway, and so the focus will be on making all industries greener, including crypto. As for whether or not some other cryptocurrency, that is already greener or less impactful on the environment, is going to take over, Novogratz believes that that is up to the market itself to decide.