Elon Musk once again lives up to his reputation as the “pump-and-dump”king on the crypto market. Yesterday, as part of a panel discussion at the industry event “The B Word”, he discussed Bitcoin and the potential of cryptocurrencies in general with Ark Invest CEO Cathie Wood and Square CEO Jack Dorsey.
Tesla investment was milestone for crypto market
Musk dropped some interesting news about his personal and entrepreneurial investments in cryptocurrencies. So far, it was only officially known that Tesla had bought Bitcoin worth $ 1.5 billion. However, according to media reports, BTC worth around $ 300 million has already been sold again with a profit of $ 100 million.
Musk himself, however, states the sale sum is lower and spoke in a tweet of” about ten percent of the Bitcoin stock ” that Tesla sold. He justified the sale at the time by saying that he wanted to show “that Bitcoin can simply be liquidated without moving the market.” In this regard, Musk probably also wanted to meet his critics, who claim to manipulate the prices on the crypto market.
– Crypto Council for Innovation (@crypto_council) July 21, 2021
Space X also invests in Bitcoin
But now Musk announced that not only Tesla holds BTC, but also the space company Space X, which is also part of the Musk empire. In addition, Musk confirmed that Bitcoin could again be accepted as a means of payment in the Tesla online shop as soon as the mining of new Bitcoins is more environmentally friendly and resource-saving. A few months ago, Musk had surprised the market that Tesla was stopping BTC as a means of payment after the launch was announced shortly before.
Musk justified the move at the time with environmental aspects. However, the news did not go down well in the crypto industry and prices slipped.
Elon Musk says SpaceX owns some Bitcoin – and has no plans to sell it https://t.co/oWYR33Ld9F
– Bloomberg (@business) July 21, 2021
Musk also has Ethereum and Dogecoin in his portfolio
But at the current industry event, Musk was already conciliatory towards Bitcoin. Musk also announced for the first time that he personally owns Bitcoin. And that’s not all: Ethereum is also part of his portfolio. Less surprising, however, is the news that Musk owns the meme token Dogecoin. Musk has expressed himself via Twitter in various tweets as a fan of Dogecoin and also announced to have bought Dogecoin for his son.
The price of Dogecoin nevertheless responded to Musk’s statement. For example, DOGE/USD temporarily reached a value of more than 0.21 dollars yesterday. Just a day earlier, altcoin had hit lows in the $ 0.16 range. This corresponds to a steep growth of more than 30 percent. However, the price has already declined again and is trading at around 0.19 dollars at the time of publication.
In addition, it must be taken into account that investors of DOGE/USD have experienced a massive correction in recent weeks. In May, the altcoin was still trading at a record level of just under $ 0.75. By contrast, Dogecoin has now lost almost 74 percent in value. This is significantly more than the average loss of the entire crypto market, which has been dominated by the bears for more than two months.
Dogecoin Investors: 1,800 Percent Growth in 2021
On the other hand, DOGE/USD is still at comparatively high levels when looking at price performance in a long-term perspective. At the beginning of the year, the price was still at $ 0.01. This means that DOGE/USD investors still have a fantastic return of 1,800 percent this year alone. While Elon Musk has not revealed when he personally bought Dogecoin, it is likely that the investment has also paid off for him in recent months.
More surprisingly, Musk also confirmed the purchase of Ethereum yesterday. So far, the billionaire has expressed himself mainly about Bitcoin and Dogecoin in his tweets. ETH, by contrast, as the most valuable altcoin by market capitalization, seemed to receive less attention from Musk.
But the news has apparently given the course another boost. For example, ETH/USD recorded a sharp price increase of around 12 percent on yesterday’s trading day. At the time of publication, the price is already back above $ 2,000, after a correction to around $ 1,720 on July 20. Kryptoszene.de has already predicted in an analysis that ETH / USD could soon reach prices of more than $ 3,000 again, provided that the price does not fall below $ 1,700. So far, this bullish scenario seems to be still possible.
I love this 🤣 🤣 https://t.co/UuyxsLVDQ7
– Elon Musk (@elonmusk) July 18, 2021
Musk is silent about the amount of investment
However, it is not known when Musk bought Ethereum at what price. He also keeps a low profile on the scale of his private investment in Ethereum, especially compared to the billions of dollars that Tesla and Space X have invested in Bitcoin.
However, investors may have been less surprised by the news that Musk has also privately bought Bitcoin. The entrepreneur had already made allusions in this direction more often, without becoming concrete. For example, Musk said in a radio interview about Bitcoin a few months ago that “he was late at the party.” Many already saw in this statement an indirect confirmation that Musk also privately bought Bitcoin.
Musk also gave no details on the size of his private Bitcoin investments. If you look at the fortune of the billionaire, who was at times considered the richest person in the world according to Forbes magazine, it is likely to be a few dollars more than usual private investors.
Bitcoin recovers to $ 32,000
The Bitcoin price has already recovered significantly after the price drop at the beginning of the week to a good $ 29,000 and is already back at $ 32,000 at the time of publication. However, Musk’s influence on the rise must not be overstated. Because even before Musk’s statements at the industry event, the prices on the crypto market had picked up again. In the meantime, BTC/USD even reached just under $ 33,000.
Musk’s commitment to the mentioned cryptocurrencies should be positive for the market in any case. After all, Tesla is currently the best-known company that is invested in Bitcoin on a large scale. According to experts, the market needs “door openers” like Tesla so that more institutional investors dare to step into the crypto market in the future. Because an investment in Bitcoin and especially altcoins is still considered riskier among analysts than buying shares or gold.
Already because of its relatively small size compared to other financial markets, the crypto market can see massive price movements due to the entry of a well-known company like Tesla. The high volatility increases the chances of returns on the one hand, but also the risk on the other.