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- Elon Musk claimed that the allegation of pumping and dumping Bitcoin price is inaccurate
- Tesla sold only 10% of its total Bitcoin holdings to check the liquidity
- Tesla will resume Bitcoin acceptance when there’s confirmation of renewable energy usage
- The latest stance of Musk helped the price of Bitcoin to recover from further corrections
Elon Musk, the CEO of Tesla and SpaceX, has remained a more prominent cryptocurrency advocate since late last year. However, Musk dumped the prices in the crypto market the previous month, showing environmental concerns due to crypto mining operations. In addition, a recent report from the crypto news outlet CoinTelegraph revealed that Magda Wierzycka, the Sygnia CEO, allegedly criticized Musk for BTC pump and dump.
However, in response to Cointelegraph’s report, Musk tweeted that the allegations are inaccurate. Moreover, he also revealed that to confirm BTC is highly liquid, and the car manufacturer has sold only 10% of the stake. And after getting confirmation that 50% of the miners are using renewable energy, Musk will remove the suspension.
Elon Musk still wants to support Bitcoin
Elon Musk remained an immense advocate of digital assets like Dogecoin and BTC. Following the scenario, 57 million followers used to trust his bullish tweets. When Musk put “#Bitcoin” on his Twitter bio, the event helped the price of the emerging asset class surge. Moreover, since Musk embraced Dogecoin, the coin’s value skyrocketed.
Read More: Elon Musk Makes a U-Turn Tesla Stops Accepting Bitcoin as Payments
However, in mid-May, the entire crypto market crashed, as the prices began to fall sharply. Notably, one of the main reasons was Musk’s concerns regarding crypto mining and the suspension of Tesla’s acceptance of the asset in exchange for its products.
However, in the recent tweet, Musk claimed that when there is a confirmation of 50% renewables usage by miners, Tesla will begin acceptance. However, the shift of miners to renewables should be with a positive future trend.
Did Tesla CEO pumped and dumped prices?
Following Musk’s tweets’ effect on the crypto market, critics considered that he is creating hype. However, critics began to allege that Musk is just playing pump and dump for his own benefit after the change in opinion.
Notably, many also considered that Tesla’s more significant part of profit comes from government bonds. And because he didn’t want to lose the bonds, he dumped Bitcoin, claiming he cannot support such an asset with environmental issues. Later, he shared a breakup meme relating to Bitcoin, which ultimately affected a quite sharp dip in BTC’s price. And after he sold a few of the BTC’s from Tesla’s digital portfolio.
Read More: Elon Musk Bitcoin tweets are dumping prices in the crypto market
However, Elon Musk claimed that the allegations are inaccurate. Moreover, he also revealed that the car manufacturer had sold only 10% of the BTC holdings. Indeed, the move was to check whether the coin designed by Satoshi Nakamoto could really be liquidated easily without moving the market.
Musk’s tweet could bring bullish momentum to BTC
The recent tweet by Elon Musk gave hope to the drowning crypto asset’s investors. At press time, bitcoin was near the level of $39k. Over the last 24 hours, the currency is up by more than 8%. However, experts in the cryptosphere deemed that because of the recent stance of Musk, BTC price is recovering from further corrections, and the asset will remain bullish in the short term.
