Cathie Wood, founder of ARK Investment Management, thinks she knows who to blame for the drop in cryptocurrency prices – Elon Musk and ESG’s move.
Speaking on Thursday at CoinDesk’s Consensus 2021 conference, Wood said that “a lot of institutional purchases are paused” and “it is precipitated by the ESG movement and this idea which aggravates Elon Musk that there is” a lot of institutional purchases made possible. ” Real environmental problems bitcoin mining “
A recent report found that the energy consumption behind crypto mining is comparable to that of some mid-sized countries and that most of it is coal-fired.
While there is fluctuation even in the best circumstances. But bitcoin̵7;s latest fall was precipitated, with Musk tweeting on May 12 that Tesla Inc. TSLA.
It will stop accepting bitcoin as a car money, citing excessive fossil fuels in crypto mining.Since then, Musk has said he has been working with developers and miners on a very eco-friendly crypto mining process. up Since then, some cryptos include bitcoin BTCUSD.
Losing more than 50% of its value from its most recent peak
“Elon may have received a call from a few institutions,” Wood said in an interview with CoinDesk, noting that BlackRock Inc. BLK.
It is the third largest shareholder of Tesla.
BlackRock CEO Larry Fink “is focused on ESG and especially on climate change,” she said. “I’m sure BlackRock registered a complaint, and there may be some big holders in Europe that are sensitive. With this a lot “
Investors have flocked to ESG, an asset with environmental, social and governance themes in recent years as socially responsible investments have emerged.
see: Investors may be willing to sacrifice returns for ESG, but this is something they don’t have to do, Deutsche Bank said.
A recent move, Wood predicts that Musk will be a positive force for bitcoin in the long term and potentially help reduce the environmental impact. And I believe he will become part of the process, ”she said.
Since its plunge last weekend, bitcoin prices have risen 13% over the past five days, although they are still down about 30% over the past month.
Has increased more than 30% this week and dogecoin DOGEUSD.
An increase of 11%; Both have had small gains over the past month, according to data from Kraken.
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