Key highlights:
- Elon Musk has denies allegations that he is manipulating the prices of Bitcoin
- He says that Tesla will accept Bitcoin payments again once at least 50% of mining is powered by clean energy
- Musk clarified that Tesla only sold 10% of its Bitcoin holdings to prove that the market is sufficiently liquid
Tesla CEO Elon Musk says Tesla will accept Bitcoin again once miners transition to clean energy
The recent price surge displayed by Bitcoin has been tied to a recent comment by Tesla CEO Elon Musk.
In a tweet on Sunday, Musk mentioned that the Tesla would consider accepting the digital asset for payments again if Bitcoin miners would use clean energy in at least around 50% of their activities. Elon Musk previously made the news in the cryptocurrency community when he criticized the environmental impact of Bitcoin mining.
After his tweet, Bitcoin rallied up in the market, breaking past the resistance figure of $35,000 and $36,000.
Musk explained that Tesla has only sold 10% of its Bitcoin holdings
The recent tweet by the SpaceX founder came in response to an article by CoinTelegraph where they quoted Sygnia CEO Magda Wierzycka, who said that Musk was manipulating prices to benefit from the $1.5 billion Bitcoin investment that Tesla announced in February.
In his response, Musk reiterated that Tesla did no such thing, as he branded Sygnia CEO’s comments as inaccurate. The Tesla CEO explained that his firm only sold about 10% of the Bitcoin in their holding as proof that they could liquidate the portion without making significant changes to the market.
Tesla is one of the big players that joined companies like MicroStrategy and Square in adding Bitcoin to its balance sheet.
In the last few months, Musk’s comments have had an impact on cryptocurrency prices on numerous occasions.
When his company bought Bitcoin in February, the price of Bitcoin saw a major boost. After that, however, the romance between Musk and Bitcoin soured. On May 12, Tesla stopped accepting Bitcoin payments because of environmental concerns. This had a noticeable impact on the BTC market, with the price of the leading digital asset tumbling shortly afterwards.
Unlike Musk’s relationship with Bitcoin, his relationship with meme coin Dogecoin is still as sweet ever, as revealed by his recent tweets favoring DOGE.
