Image Courtesy: Media Library
Bitcoin rose $39,021.54, at 0800 hours IST on Monday. This came after Tesla CEO, Elon Musk’s reply to a tweet citing that Bitcoin volatility is ‘price manipulation’ by Elon Musk. In reply to the tweet, he said that Tesla Inc. plans to resume Bitcoin transactions after mining is done with more clean energy. After the tweet, Bitcoin jumped about 10%, which was the largest percentage rise in a single day since June 9.
In reply to this tweet, Musk tweeted, “This is inaccurate. Tesla only sold approximately 10% of holdings to confirm BTC could be liquidated easily without moving market. When there’s confirmation of reasonable of around 50% clean energy usage by miners with positive future trend, Tesla will resume allowing Bitcoin transactions soon.”
This is inaccurate. Tesla only sold ~10% of holdings to confirm BTC could be liquidated easily without moving market.
When there’s confirmation of reasonable (~50%) clean energy usage by miners with positive future trend, Tesla will resume allowing Bitcoin transactions.
— Elon Musk (@elonmusk) June 13, 2021
In the article by Cointelegraph in which Magda Wierzycka, co-founder and CEO of South African asset manager Sygnia said that the recent tweets on Bitcoin should have prompted an investigation by the U.S. Securities and Exchange Commission.
In February, Tesla bought $1.5 billion in Bitcoin and indicated its intent to start accepting Bitcoin as payment for vehicles. In March 2021, Musk tweeted, “you can now buy a Tesla with Bitcoin,” but in May the decision was suspended due to concerns about fossil-fuel usage for Bitcoin mining and transactions. Bitcoin dropped by roughly 10% shortly after the tweet. Bitcoin had lost more than 50% from its record high of $64,895 in April as of May 19.
On the other side, Musk’s recent tweets about dogecoin sparked a spike in the digital currency. According to CoinMarketCap.com, Dogecoin has risen to become the sixth-largest cryptocurrency by market capitalization.