Cryptocurrency Analysis

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Bitcoin reacted to Musk's tweets



Bitcoin surged above the $ 40,000 mark yesterday after another price swings on the weekend. This is amid the tweets of Tesla's CEO Elon Musk, who defended himself from criticism over its market impact and said Tesla had sold Bitcoin but could resume transactions using it.



Like on Monday, Bitcoin reacted to Musk's decisions. It can be recalled that Tesla announced a $ 1.5 billion purchase of Bitcoin in February and said it would accept cryptocurrency as payment. However, Musk revoked his words and said that he would not accept bitcoins due to concerns that mining the currency is energy-intensive and contributing to climate change.

But now, Bitcoin surged nearly 10% on Sunday and rose 4.3% on Monday, namely to $ 40,692.27. This is its first attempt to overcome $ 40,000 in more than two weeks. This serves as Bitcoin's reaction to Musk's announcement that Tesla will be able to resume transactions with bitcoins when at least 50% of the confirmation of pure mining appears.

Paul Tudor Jones, Hedge Fund Manager, and Billionaire, also said that Bitcoin is a great way to protect his wealth in the long term and is part of his portfolio, just like gold. This supported the continuation of Bitcoin's growth.

MicroStrategy, a software company and major bitcoin sponsor, also contributed to the rise in prices. Bobby Ong, Co-Founder of crypto-analytics website CoinGecko, raised half a billion dollars to buy Bitcoins.

Bitcoin has surged by about 40% this year, but after the introduction of tough regulatory measures in China and Musk's clearly wavering enthusiasm, it has collapsed from an all-time peak of over $ 60,000. Against this background, Tesla shares have collapsed by about 30% since the company bought bitcoin.



The tweet of Elon Musk was made in response to an article based on remarks by Magda Vezhitskaya, Head of a Cybersecurity firm from South Africa. Last week, she accused Musk of manipulating prices.

Musk, outraged by the remarks of Magda Vezhitskaya, said that Tesla sold only 10% of its assets in order to confirm that there was no market change in Bitcoin's sales.

Earlier in May, Musk wrote that he was not going to sell bitcoins and never did. His tweets were enough to upset markets, still volatile after the May collapse. Thus, investors are eagerly awaiting Tesla's next earnings report next month to learn about the changes in its position.





Irina Yanina
Analytical expert
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