Even as the price of Bitcoin dropped by 40 percent from its April high of $65,000, Tesla CEO Elon Musk believes he has the 'diamond hand'. On Wednesday (May 19), Musk posted a tweet that said ‘Tesla has diamond hands’.
Tesla has 💎 🙌— Elon Musk (@elonmusk) May 19, 2021
Musk's latest tweet is being interpreted that he has faith in the Bitcoin stock and that he is in no mood to sell it off amid a meltdown. Tesla has Bitcoins worth $1.5 billion in its possession.
In market jargon, 'diamond hands' is a term used for the traders who hold on to a stock even if its price is plummeting as they believe in the eventual profitability of their stocks and securities.
Earlier on February 8 this year, Musk had announced that consumers will be allowed to purchase Tesla cars with Bitcoins, resulting in the price of the cryptocurrency soaring.
However, last week, Musk backtracked from his announcement and said that Tesla is suspending purchases with Bitcoin citing 'high use of fossil fuels in Bitcoin mining". This triggered a slide in the digital currency.
Meanwhile, Bitcoin lost over $500 billion of its market capitalization as China took a critical view of digital tokens being used as a form of payment. The People’s Bank of China has asked financial and payment institutions to steer clear of cryptocurrencies even though more than 50 percent of the Bitcoin mining in the world is currently done in China.
The global meltdown of cryptocurrency stocks has erased all the gains Bitcoin notched following Tesla's February 8 announcement. Bitcoin presently is being traded at a slump of 0.31 percent in the past 24 hours, according to Coindesk. The cryptocurrency has a market cap of $741.79 billion.