Cryptocurrencies turned out to be susceptible to Elon Musk’s tweets: one of his statements can bring down or raise the rates of digital money. So on Wednesday, July 21, during The B Word conference dedicated to bitcoin, billionaire and head of Tesla Elon Musk F admitted that he owned Ethereum in addition to BTC. After this announcement, the price of ETH increased by 12% and exceeded $ 2,000. This is far from the first time that the course of digital money has changed dramatically after Musk’s statements.
Factor Mask on the Rise and Fall of the Bitcoin Rate
From reviews of the Coinspeakerreliable news portal, some important facts became known:
- Musk announced that Tesla had invested $1.5 billion in bitcoin and was going to accept bitcoins as payment for its products.
- The bitcoin rate broke a record rate of $50,000.
- By that time, the growth of cryptocurrency since the beginning of the year was 72%.
Later in May 2021, the entrepreneur announced that Tesla was suspending accepting payments for electric vehicles in bitcoins due to the non-environmentally friendly method of mining cryptocurrencies. As a result, Bitcoin lost 15%. At the same time, Musk said that the company would not sell cryptocurrency. A few days later, the value of the cryptocurrency fell again; this happened after a discussion by Musk on Twitter.
At the same time, during the conference The B Word, the billionaire said that he would continue to keep the cryptocurrency in his portfolio. “If the price of bitcoin falls, I will lose money. I can rock the cryptocurrency, but I don’t dump it,” Musk said during the event. He also revealed that Tesla would accept Bitcoin in the future as mining would become more sustainable.
Ethereum Owner’s Reaction to Manipulation by Elon Musk
“Elon’s influence on the cryptocurrency market will not last forever,” Ethereum creator Vitalik Buterin said in an interview with CNN in May 2021. He noted that the cryptocurrency space had first come across Musk’s tweets in 2020. However, Buterin believes that the markets will learn to cope with its impact in the future.
Elon Musk is well aware of the consequences of his actions and statements. According to experts, Musk may be interested in the very process of influencing the market and how cryptocurrency quotes are changing. The successful experience of “rocking” Bitcoin and other cryptocurrencies may push him to new attempts to do so.
Conclusion
The fall of Bitcoin in the spring of 2021 was a kind of blow to the reputation of Musk since such a sharp change in Tesla’s financial policy looked like deceiving the expectations of investors who were guided by Musk. Over time, the influence of Musk’s statements on investors has diminished. Now he has returned to the ranks of bitcoin supporters. This can be regarded as a rational decision since Musk himself, Tesla, and SpaceX have bitcoins, and the fall in the cryptocurrency rate is not beneficial to him.
