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Bitcoin Jumps 12% After Elon Musk Vows to Endorse It Again

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Created by TradeOr

3rd Party Analysis 15 Jun 2021

Key Takeaways

  • A tweet by the billionaire CEO shoots Bitcoin higher by 12%
  • The Elon Effect remains strong despite crypto circles’ criticism over Elon’s power over crypto

Bitcoin Jumps 12%

Elon Musk’s power to move the cryptocurrency market has created a significant amount of volatility in the price of Bitcoin and his other preferred choice of crypto, Dogecoin. Indeed, the Tesla and SpaceX CEO has recently stirred crypto circles who have uprisen against his tweeting that has added and removed billions of dollars from the digital asset space.

In fact, the latest criticism over Elon Musk’s might over the valuation of tokens came from Sygnia CEO Magda Wierzycka. Ms. Wierzycka is a South African billionaire entrepreneur and the co-founder and CEO of Sygnia, a financial services company.

Magda Wierzycka, according to a Cointelegraph story shared on Twitter, accused Elon Musk of manipulating the crypto market and performing the so-called pump and dump scheme. “What we have seen with Bitcoin is price manipulation by one very powerful and influential individual,” Sygnia CEO said. In her words, after Elon Musk inflated Bitcoin’s price following Tesla’s purchase of $1.5bn worth of Bitcoin, he “sold a big part of his exposure at the peak.”

The Elon Effect

Elon Musk followed up with a reply that sent Bitcoin higher by 12%, or roughly $5,000. “This is inaccurate,” Mr. Musk said. “Tesla only sold ~10% of holdings to confirm BTC could be liquidated easily without moving market.”

He continued by saying that when Bitcoin reaches a “reasonable (~50%) clean energy usage by miners with positive future trend, Tesla will resume allowing Bitcoin transactions.” The duel on Twitter shows Elon Musk’s effect on the crypto market remains strong.

In a matter of minutes after his comment, the price of Bitcoin shot up over 5%, climbing from roughly $35,000 to levels near $37,000. Hours later, Bitcoin has kept increasing its value and is presently trading 12% higher from the levels prior to the release of the tweet. The current price of Bitcoin stands at a 10-day high, trading at $39,300. Earlier in the session, Bitcoin reached its intraday high of $39,900.

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