Why The Cardano Price Soared While Other Cryptos Crashed

Business, Computer, Security, Currency, Finance

Image Source: Pixabay

The Cardano (ADA-X) price hit an all-time high on Thursday, even as almost all other cryptocurrencies were tanking. Blame Elon Musk. The CEO of Tesla Inc. (TSLA) made another of his market-moving tweets late Wednesday, and it caused both events.

Musk announced that Tesla has (for now) halted taking bitcoin (BITCOMP) as payment for vehicles. He stated the maker of electric cars was concerned about the rising amount of fossil fuel-generated electricity used by the miners who maintain and secure the bitcoin network.

"Cryptocurrency is a good idea on many levels and we believe it has a promising future, but this cannot come at great cost to the environment," Musk said in his tweeted statement. Although Musk also noted that Tesla would not be selling any of the bitcoin it held on its balance sheet, the cryptocurrency markets saw the tweet as bad news.

Bitcoin plummeted nearly $9,700 in the two hours following Musk's tweet – a drop of about 17%. Most other cryptocurrencies, as they usually do, fell along with bitcoin. But not Cardano – after a brief drop, it reversed course and started powering toward an all-time high.

Why the Cardano Price Hit a Record High

Although Musk did not mention Cardano in his tweet, he did drop an intriguing hint that immediately sent cryptocurrency Twitter sleuthing. "We are also looking at other cryptocurrencies that use <1% of Bitcoin's energy/transaction," Musk said. It didn't take long for people to guess that Cardano could very well be at the top of Tesla's list.

Just a few weeks ago, Cardano founder and CEO Charles Hoskinson told Forbes that his cryptocurrency "is 1.6 million times more energy efficient at the moment than bitcoin." The Cardano Foundation seized its chance the next morning by tweeting an image comparing Cardano and Tesla with the message, "An obvious match?"

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Disclaimer: Any performance results described herein are not based on actual trading of securities but are instead based on a hypothetical trading account which entered and exited the suggested ...

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