Tesla boss Elon Musk tweets and Bitcoin jumps, again | Automotive industry news


Musk’s latest tweet about the possibility of allowing Bitcoin transactions for Tesla caused the currency to rise nearly 10 percent.

Tesla Inc. CEO Elon Musk has tweeted that the electric vehicle maker will resume Bitcoin transactions when the miners verifying the transactions use more renewable energy.

“When there is confirmation of the reasonable use (~ 50 percent) of clean energy by miners with a positive future trend, Tesla will resume Bitcoin transactions,” he said in a tweet Sunday.

Bitcoin rose 9.8 percent to $ 39,035.47 on Sunday, adding $ 3,492.71 to its previous close.

Musk’s message was in response to a report published in Cointelegraph, citing Magda Wierzycka, chief executive of South African asset manager Sygnia, as she said Musk’s recent tweets to Bitcoin should have prompted an investigation by the United States Securities and Exchange Commission.

Bitcoin, the world’s largest and best-known cryptocurrency, has risen 40.7 percent from a low of $ 27,734 a year on Jan. 4. It fell about 1 percent to $ 38,881 at 7 a.m. in Hong Kong on Monday (23:00 GMT on Sunday).

Ether, the currency linked to etereum’s blockchain network, rose 7 percent to $ 2,532.77 on Sunday, adding $ 165.77 to its previous close.

Musk also said Tesla sold about 10 percent of the shares to confirm that Bitcoin could be easily liquidated without moving the market.

“Positive momentum”

“The tweet added to a positive boost, as Elon’s stance appears to be moderating and providing a goal that is not far off,” said Jonathan Cheesman, head of over-the-counter and institutional derivatives trading. cryptographic FTX. “The rally was already underway as the market speculated about an imminent purchase of MicroStrategy and the G-7’s comments on cryptography were neutral, even optimistic, about digital innovation.”

MicroStrategy Inc., whose CEO Michael Saylor has become a vocal evangelist for Bitcoin, last week increased a supply of junk bonds with the goal of buying the cryptocurrency at $ 500 million from $ 400 million of dollars.

Musk has murdered Bitcoin and other digital tokens in recent months. In February, Tesla announced that it had bought $ 1.5 billion in Bitcoin and signaled its intention to start accepting Bitcoin as payment for vehicles. In March, Musk tweeted, “You can now buy a Tesla with Bitcoin,” only to say in May that the practice was suspended due to concerns about the use of fossil fuels for Bitcoin mining and transactions. Bitcoin fell more than 10 percent after this tweet.

The U-turn has been controversial, as Wierzycka’s comments point out, in part because the movements of Tesla and Musk have had noticeable effects on the price of Bitcoin. While there are other issues, ranging from institutional adoption and diversification on the positive side to sustainability and normative concerns on the negative, a Musk tweet can often change momentum and dominate the narrative. for days or weeks.

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