The price of bitcoin jumped about 4% Monday afternoon. After Tesla CEO Elon Musk tweeted that he was having active discussions regarding the sustainability of the digital coin.
Initially, Cryptocurrency was operating on Blockchain technology. However, nowadays, it is working on a new technology called EM ( Elon Musk ).
Bitcoin was trading around $38,074, according to Coindesk, when at about 3:42 p.m. ET Musk posted on Twitter: “Spoke with North American Bitcoin miners. They committed to publish current & planned renewable usage & to ask miners WW to do so. Potentially promising.”
Bitcoin price again pooping up
Credit goes to Elon musk
As Elon Musk’s tweets go, so goes the crypto market. Above all, The billionaire and Tesla CEO have been tweeting about crypto a lot. By and large, sending the price of bitcoin and dogecoin — up and down with fewer than 280 characters.
Firstly, Bitcoin Rises to Near $40K After Musk Tweets About BTC Mining’s ‘Promising’ Renewable Usage. Secondly, Musk continues to tweet about cryptocurrency.
The price for bitcoin (BTC, +13.87%), already up on the day. It received an extra boost from a new tweet by Tesla CEO Elon Musk on bitcoin mining’s “promising” renewable usage, as it’s near a key resistance level at $40,000 during U.S. trading hours on Monday.
The news takes on added significance as Musk’s comments on May 13 regarding bitcoin’s environmental impact. It started a dramatic sell-off in the crypto market that gathered force last week and continued through this past weekend, with bitcoin dropping to just above $31,000 Sunday.
Monday’s quick recovery came as demand from wealthy investors appears to have brought relief to the battered cryptocurrencies, as CoinDesk reported earlier.
Adding support to bitcoin’s price Monday was Bridgewater Associates founder Ray Dalio, who said he owns some bitcoin. He mentioned that during an interview recorded on May 6 and broadcast during the first day of CoinDesk’s Consensus 2021 conference.
Musk’s cryptocurrency tweets in the past few weeks have been particularly impactful for bitcoin. Last Wednesday, Musk tweeted that Tesla would no longer be accepting bitcoin as payment due to environmental concerns about its heavy energy use, a reversal of its acceptance of the marquee cryptocurrency just two months earlier. As a result, the price of bitcoin dropped around 15 percent.
Then, on Monday, Musk said that Tesla had not sold bitcoin recently, which seemed to halt the drop and keep prices roughly around $45,000.
In a word, All of this is to say that Musk’s tweets greatly impact crypto prices. Here’s what his tweets look like against the bitcoin price in the last week. The currency which supposed to work on a blockchain is now working on EMTs [elon musk tweets ]
The bottom line
In 2018, the SEC dinged Musk and Tesla $20 million each after his tweet that he had “funding secured” to take Tesla private, at a much higher share price sent the stock soaring. Musk’s tweets about bitcoin are less fraught than boosting the price of his own company, but it certainly doesn’t feel fair that one person can affect the price of bitcoin with a tweet.
Speaking of fair: Musk is not the only one potentially making money off his crypto tweets. The Federal Trade Commission reported Monday that consumers were scammed out of $2 million by Musk impersonators in the past six months.
This suggests Musk’s control over the crypto markets is so strong that it extends to imitators, too. And we shouldn’t expect Musk’s outsize influence over crypto prices to go away soon: Cryptocurrencies are getting more commonplace, and Musk’s empire is growing.