Bitcoin costs rise once more above $ 40,000. Yeah, it is due to Elon Musk.

Text size

Bitcoin’s price soared over $ 40,000 on Monday, up 13% in 24 hours.

Photo by TOBIAS SCHWARZ / AFP via Getty Images

Just a tweet, that’s all it took.

Bitcoin investors who have been waiting

Tesla

Chief Executive Elon Musk, bailing cryptocurrency out of a week-long rut, may have just granted her wish. For now, at least.

Bitcoin’s price soared over $ 40,000 on Monday, up 13% in 24 hours after Musk responded to a CoinTelegraph report on Twitter accusing him of “Bitcoin pump and dump”.

“That is inaccurate. Tesla only sold ~ 10% of its holdings to confirm that BTC could easily be liquidated without moving the market. If there is confirmation of reasonable (~ 50%) clean energy use by miners with a positive future trend, Tesla will allow Bitcoin transactions again, ”he said in response.

In the article, Magda Wierzycka, chief executive officer of South African financial services company Sygnia, said that the recent bitcoin volatility was “an unexpected function of what I would call market manipulation by Elon Musk. If that happens to a publicly traded company, it will be investigated and severely punished by [the] SEK [Securities and Exchange Commission]. “

But investors seemed more focused on what Musk had to say about resuming crypto buying for its electric cars. His tweet in May that Tesla would no longer accept Bitcoin for vehicle purchases for environmental reasons was blamed for triggering a sell-off of cryptocurrencies.

Bitcoin remains around 45% below an all-time high of $ 64,829.14 that was hit in mid-April.

According to an index from the University of Cambridge, Bitcoin currently consumes around 97 terawatts per hour, which exceeds the electricity consumption of entire countries like Kazakhstan and is not far from what the Netherlands consume.

However, at the time of Musk’s tweet in May, some analysts suggested that he would likely seek to bolster Tesla’s green credentials and promote sustainable energy to boost bitcoin production, which would benefit the company in the long term.

Jeffrey Halley, senior market analyst at Oanda, said he wasn’t entirely sure how Musk would collect the data to ensure bitcoin miners were using more renewable energy.

But in any case, the weekend rally for Bitcoin invalidated a bearish symmetrical triangle – a bearish chart pattern – that he was watching last week. “The chart is pointing to consolidation followed by a rally around $ 41,000.00 aiming for further gains to around $ 44,000.00,” he said in a statement to clients.

“This latest tweet only confirms what a crazy relationship Musk has with Bitcoin and its incredible impact on prices,” said Neil Wilson, chief market analyst for Markets.com, in a customer note.

Write to [email protected]

CoinShares chief strategy officer, Meltem Demirors, speaks to Barron’s Carleton English to clear up some of the complications surrounding recent cryptocurrency price movements.

Comments are closed.