Tesla chief Elon Musk tweets and Bitcoin jumps yet again | Automotive Industry News

Musk’s latest tweet about the potential authorization of Bitcoin transactions for Tesla caused the currency to jump nearly 10%.

Tesla Inc CEO Elon Musk tweeted that the electric car maker would resume authorization of Bitcoin transactions when miners who verify transactions use more renewable energy.

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

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

Musk’s post was in response to a Cointelegraph article, which quoted Magda Wierzycka, executive chairman of South African asset manager Sygnia, saying Musk’s recent tweets about Bitcoin should have triggered a Securities and Exchange Commission investigation. the United States.

Bitcoin, the world’s largest and best-known cryptocurrency, is up 40.7% from a year’s low of $ 27,734 on January 4. It was down around 1% to $ 38,881 by 7 a.m. in Hong Kong on Monday (11 p.m. GMT Sunday).

Ether, the coin linked to the ethereum blockchain network, jumped 7% to $ 2,532.77 on Sunday, adding $ 165.77 to its previous close.

Musk also said Tesla sold around 10% of the holdings to confirm Bitcoin could be liquidated easily without moving the market.

“Positive momentum”

“The tweet added to the positive momentum as Elon’s position appears to moderate and provide a target that is not far off,” said Jonathan Cheesman, head of OTC and institutional sales at the exchange. of FTX cryptographic derivatives. “The rally was already underway as the market speculates on an imminent purchase of MicroStrategy and the G-7’s comments on crypto were neutral, if not bullish, on digital innovation.”

MicroStrategy Inc, whose CEO Michael Saylor has become a Bitcoin evangelist, last week spurred a junk-bond offer to buy the $ 500 million cryptocurrency for $ 400 million.

Musk has tricked Bitcoin and other digital tokens over the past few months. In February, Tesla announced that it had purchased $ 1.5 billion in Bitcoin and signaled its intention to start accepting Bitcoin as a payment method for vehicles. In March, Musk tweeted, “You can now buy a Tesla with Bitcoin,” saying in May that the practice was suspended due to concerns about the use of fossil fuels for Bitcoin mining and trading. Bitcoin fell more than 10% after this tweet.

The U-turn has been controversial, as Wierzycka’s reported comments indicate, in part because the actions taken by Tesla and Musk 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 regulatory concerns on the negative side, a tweet from Musk can often change momentum and can dominate the narrative for days or weeks.

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