Elon Musk, CEO of Tesla, has done it again! Bitcoin prices soared to $40,000 after yet another weekend of price swings triggered by tweets from Tesla CEO Elon Musk, who defended his market influence and stated that Tesla sold bitcoin but may resume transactions using it.
Since Tesla announced a $1.5 billion bitcoin purchase in February and said it would accept the cryptocurrency as payment, Bitcoin has seen an upward trend in Musk’s opinion for months. However, he later reversed his position and stated that the electric car maker would not accept bitcoin due to concerns about how mining the currency consumes a lot of energy and contributes to climate change.
“Tesla will resume allowing Bitcoin transactions once there is confirmation of reasonable (50 percent ) clean energy usage by miners with a positive future trend,” Musk said on Twitter.
After that message, bitcoin jumped more than 9%, breaking above its 20-day moving average, and climbed further in Asia to reach $39,838.92.
It was last up 0.5 percent at $39,189, attempting to break out of the month’s relatively narrow trading range.
According to Bobby Ong, co-founder of crypto analytics website CoinGecko, the market was also supported by software company and major bitcoin backer MicroStrategy, which raised half a billion dollars to buy bitcoin.
Bitcoin has gained about a third of its value this year, but it has fallen from a record high of more than $60,000 due to a regulatory crackdown in China and Musk’s apparent lack of enthusiasm for it. Telsa stock has dropped roughly 30% since the company purchased bitcoin.
Musk’s tweet was in response to an article based on comments from Magda Wierzycka, CEO of cybersecurity firm Syngia, who accused Musk of “price manipulation” and selling a “significant portion” of his exposure in a radio interview last week.
“This is incorrect,” Musk stated. “Tesla only sold 10% of its holdings to confirm that BTC could be liquidated easily without disrupting the market.”
Musk tweeted in May that Tesla “will not be selling any bitcoin” and “has not sold any bitcoin,” but investors are waiting for Tesla’s next earnings report, which is due next month, for any changes to its position.
Musk has expressed dissatisfaction with the massive computing power required to process bitcoin transactions, and in early June posted messages that appeared to be lamenting a breakup with bitcoin.