So Elon Musk has decided Tesla will not take Bitcoin. Bitcoin has been bouncing up and down like a big swing trade for some weeks. Tesla not taking Bitcoin does not actually change the Market capitalization of Bitcoin. It changes nothing. It just means that it’s a bit of a step back. I doubt Elon’s real reason is that Bitcoin is using too much electricity. My real thinking behind it is that Tesla’s stock has been suffering.

Perhaps Mr Musk is under pressure from his board to do something about the stock price. If it breaks below this support who knows where it will go. Elon’s fascination with DOGE coin may be unhealthy for Tesla’s stock price, coupled with chip shortages and rising inflation, the markets don’t need this indecision.

There is speculation that Tesla will start taking DOGE coin which caused a huge rise in prices of the currency.

Do I think Doge can reach one dollar soon? Yes, I do if the car manufacturer does announce that they will take DOGE.

Unfortunately, I think there is a danger Mr. Musk’s Twitter feed may be seen to be market manipulation and may attract the attention of the SEC or other regulatory bodies. This could harm Tesla’s share price.

Personally, I think the would have been better to keep taking Bitcoin and let the markets get used to it. But when you have a board and shareholders you have to keep them happy sadly.

Writing about Trading, Currencies and shares