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

Stock Markets Jun 14, 2021 10:37AM ET
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© 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."

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.

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

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Comments (25)
Suman Sanghavi
Suman Sanghavi Jun 14, 2021 12:07PM ET
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hello
Stephen Fa
Stephen Fa Jun 14, 2021 11:58AM ET
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Bitcoin's 50% drop was volatile consolidation after a 600% parabolic gain.
TL Chan
TL Chan Jun 14, 2021 10:55AM ET
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Elon su*KS. Sick of he said this and told that. Sick sick sick!
Yilin Long
Yilin Long Jun 14, 2021 10:44AM ET
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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.
Marius Cristian
Marius Cristian Jun 14, 2021 10:06AM ET
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No its not. Its alredy in a trend before the tweet.
Tony Valhalla
Tony Valhalla Jun 14, 2021 9:54AM ET
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nice joke from Tesla. sadly ppl use it as best indicator to buy or sell the same day.
Antique Purveyor
Antique Purveyor Jun 14, 2021 8:27AM ET
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so stupid
Miles Mathewson
Miles Mathewson Jun 14, 2021 8:05AM ET
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when will this crook stop manipulating the market?
Vince Cheung
Vince Cheung Jun 14, 2021 8:05AM ET
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when people are no longer willing to be manipulated.
Hoà Lê
Hoà Lê Jun 14, 2021 7:02AM ET
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Michael McDonald
Michael McDonald Jun 14, 2021 6:24AM ET
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"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.
 
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