On Sunday, the price of the world’s largest cryptocurrency rose sharply. The price is partly connected to Tesla CEO Elon Musk again. He said on Sunday that once it is confirmed that miners use clean energy reasonably, the company will resume bitcoin transactions.
Musk responded to comments made by Magda Wierzycka, CEO of South African asset management company Sygnia. Weirzycka stated that Musk’s tweets about bitcoin prices were “market manipulations.” It should trigger an investigation by the US Securities and Exchange Commission.
Tesla disclosed in a document filed with the US Securities and Exchange Commission in February that it had purchased $1.5 billion worth of bitcoin and stated that it would start accepting bitcoin as a payment method for its products.
However, the electric car manufacturer stopped buying cars with Bitcoin in mid-May because of concerns about cryptocurrency mining. Crypto mining requires a powerful computer bank, which could lead to climate change, and that’s why Musk stepped back.
Musk is worried about the rapid increase in the use of fossil fuels in Bitcoin mining and trading
Coal emission raises the most concerns as its emissions are the most serious of all fuels.
On Sunday, Musk disputed Wierzycka’s allegations of market manipulation and explained: “Tesla sold approximately 10% of its Bitcoin holdings,” to confirm that BTC can be easily liquidated without moving the market. The company revealed in its financial report that Tesla sold $272 million worth of “digital assets” in the first quarter. It helped the company reduce its operating loss of $101 million.
Some of Musk’s recent tweets have also caused enthusiasm, confusion, worry, and sometimes fear in the crypto community. Earlier this month, investors tried to parse a mysterious tweet from SpaceX, including a bitcoin symbol and a heartbroken emoji.
His social media correspondence has had a massive impact on the prices of Dogecoin DOGEUSD and Bitcoin. He blames it at least in part on the current collapse of Bitcoin and the broader cryptocurrency complex.
Musk’s comments on cryptocurrencies on social media often caused prices to spike or plummet. However, Sunday did not seem to have an immediate impact.
In the last check on Sunday afternoon, the price of Bitcoin rose by almost 8%, changing hands for $38,808.09 on CoinDesk.
Bitcoin has risen by more than 28% so far this year. However, it is still down about 40% from its peak of $64,829.14 in mid-April.
The world’s second-largest cryptocurrency on the Ethereum blockchain, Ether ETHUSD, rose nearly 5%, changing hands to US$2,521.81.