News

Bitcoin surges after Elon’s tweet

After reports that South African asset manager Sygnia’s CEO Magda Wiezycka criticized Elon Musk for an alleged Bitcoin ‘pump and dump’, the billionaire CEO took to Twitter dismissing these allegations.

He also added that ‘When there’s confirmation of reasonable (~50%) clean energy usage by miners with the positive future trend, Tesla will resume allowing Bitcoin transactions.’

BTC 24-hour price chart. Source: Coindesk

After this disclosure, Bitcoin jumped from $37,529 to $40,528 with a change of 12.87% as of writing. The effect was seen in other cryptocurrencies like ETH, ADA and XRP showed similar gains ranging from 7-9%.

Elon Musk has been in the news for his influence embarking a rollercoaster in the cryptocurrency market especially for the premier crypto Bitcoin and more so for the meme-based crypto DOGE.

In February, Tesla announced it had bought $1.5 billion in bitcoin and plans to start accepting it as payment for vehicles. Elon himself tweeted: “You can now buy a Tesla with Bitcoin.”

However, the support was short-lived as the company announced in May that they’re withdrawing their support from bitcoin due to concerns about fossil-fuel usage for Bitcoin mining and transactions. It wasn’t well-received by the public and the crypto industry, which took a severe hit after that.

Industry experts believe that Elon’s influence on cryptos will be temporary, and as the crypto market will mature, these ‘influential’ buy-outs/sell-outs will be few and far between. This was conveyed by Ethereum’s founder Vitalik Buterin who had conveyed this in an interview a couple of weeks back.

Leave a Comment

Your email address will not be published. Required fields are marked *

Close Bitnami banner
Bitnami