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Bitcoin tops $40,000 after Musk says Tesla could use it again

Published 06/14/2021, 01:57 AM
Updated 06/14/2021, 10:37 AM
© Reuters. FILE PHOTO: Representations of virtual currency Bitcoin are seen in front of Tesla logo in this illustration taken, February 9, 2021. REUTERS/Dado Ruvic/Illustration

© Reuters. FILE PHOTO: Representations of virtual currency Bitcoin are seen in front of Tesla logo in this illustration taken, February 9, 2021. REUTERS/Dado Ruvic/Illustration

By Tom Wilson and Tom Westbrook

LONDON/SINGAPORE (Reuters) -Bitcoin climbed above $40,000 on Monday, after yet another weekend of price swings following tweets from Tesla (NASDAQ:TSLA) boss Elon Musk, who fended off criticism over his market influence and said Tesla sold bitcoin but may resume transactions using it.

Bitcoin has gyrated to Musk's views for months since Tesla announced a $1.5 billion bitcoin purchase in February and said it would take the cryptocurrency in payment. He later said the electric car maker would not accept bitcoin due to concerns over how mining the currency requires high energy use and contributes to climate change.

"When there's confirmation of reasonable (~50%) clean energy usage by miners with positive future trend, Tesla will resume allowing Bitcoin transactions," Musk said on Twitter on Sunday.

Bitcoin , which jumped nearly 10% on Sunday, breaking above its 20-day moving average, was up 4.3% on Monday at 40,692.27, its first foray above $40,000 in more than two weeks.

"Musk's words caused bitcoin to surge," said Simon Peters, market analyst at eToro.

Bitcoin was also supported Monday after billionaire hedge fund manager Paul Tudor Jones told CNBC on Monday that bitcoin is a great way to protect his wealth over the long run and is part of his portfolio just like gold.

Bitcoin prices were also helped by software company and major bitcoin-backer MicroStrategy raising half a billion dollars to buy bitcoin, said Bobby Ong, co-founder of crypto analytics website CoinGecko.

Bitcoin is up about 40% this year but has collapsed from a record peak above $60,000 amid a regulatory crackdown in China and Musk's apparently wavering enthusiasm for it. Tesla stock is down about 30% since the company's bitcoin purchase.

Musk's tweet was made in response to an article based on remarks from Magda Wierzycka, head of cybersecurity firm Syngia, who in a radio interview last week accused him of "price manipulation" and selling a "big part" of his exposure.

"This is inaccurate," Musk said. "Tesla only sold ~10% of holdings to confirm BTC could be liquidated easily without moving market."

© Reuters. FILE PHOTO: Representations of virtual currency Bitcoin are seen in front of Tesla logo in this illustration taken, February 9, 2021. REUTERS/Dado Ruvic/Illustration

Musk had tweeted in May that Tesla "will not be selling any bitcoin" and "has not sold any bitcoin" but investors are keenly awaiting Tesla's next earnings update - due next month - for any disclosure of changes to its position.

Musk has taken issue with the vast computing power required to process bitcoin transactions and in early June posted messages appearing to lament a breakup with bitcoin.

Latest comments

hello
Bitcoin's 50% drop was volatile consolidation after a 600% parabolic gain.
Elon su*KS. Sick of he said this and told that. Sick sick sick!
I'm surprised how ppl on this platform react so differently to Musk and Trump for the same type of behaviors. Or maybe I'm not, cuz the consistency here had always been their double standards lol.
No its not. Its alredy in a trend before the tweet.
nice joke from Tesla. sadly ppl use it as best indicator to buy or sell the same day.
so stupid
when will this crook stop manipulating the market?
when people are no longer willing to be manipulated.
Fk
"Magda Wierzycka, head of cybersecurity firm Syngia..."  It's spelt Sygnia! and Sygnia Ltd. and its subsidiaries (the Group) is a specialist financial services group headquartered in South Africa. Not a cybersecurity firm.
He's Sick
don't listen to false gods
mr pusing (u-turn) and pusing (u-turn)
This guy is not normal.
Musk is diagnosed with Autism.
oh really! so sad
Tesla’s regulatory credits revenue has been growing at an average annual growth rate of 85% between 2012 and 2020, with 2020 being the best year when Tesla posted emission credit sales that surged beyond $1 billion. In 2020, Tesla reported a regulatory credit revenue of $1.58 billion, beating all prior records. Also, Tesla’s TTM net profits dived to -$600 million without regulatory credits revenue. https://stockdividendscreener.com/auto-manufacturers/teslas-regulatory-credits-revenue/
It all Depends how he wakes up.. This guy has ego issue and manipulates market to „prove” how mighty he is.
Would not be surprised to see Musk get charged with something criminally. He may think that he is immune because he is talking about BTC and not TSLA, but he is talking about TSLA's holdings/dealings with BTC. If he lied about TSLA not selling any of its position, but is now saying that it sold 10% that could be a significant issue. Heck, John McAfee has been criminally charged for less than this. I use to be a fan of Musk, but like many am getting sick of the guy and his market manipulation.
And just fyi, for anybody who has not figured it out, Musk does not care what the price of crypto does, he just wants to push his products on the crypto market. That is why he is saying he will not support crypto until they use "clean energy" (i.e. his products). He just sees a business opportunity.
 Wasting clean energy to crypto is almost as bad as wasting fossil in my opinion.
In the begining they said bitcoin was outside the realms of manipulation lol
He said that the same day that Tesla stoped acceptin Bitcoin
Mask is a ****
Perfect time to sell it…
Very easy to make money said by Elon.
Musk's sect excited again
Not a very decentralized asset when a single man’s tweets move it 12% in a few hours, huh? At least the FED is an institution, not literally A SINGLE PERSON.
how about tesla sale revenue
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