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Elon Musk comments will no longer affect Bitcoin as Market Cap Rises

Elon Musk comments will no longer affect Bitcoin as Market Cap Rises

Elon Musk, the CEO of Tesla, recently stated that Tesla Inc. would resume transactions in Bitcoin once mining is done with more clean energy.

It indicates that Musk still sees a future for widespread Bitcoin adoption, despite his criticism of the digital currency for being an energy glutton and depending too much on fossil fuels.

Musk’s tweet also reiterates his defence of having sold 10% of the electric vehicle maker’s bitcoin stash in Q1 and would also seem to indicate the company hasn’t sold anymore.

Musk’s tweet on Sunday was in reply to a report in CoinTelegraph, which cited Magda Wierzycka, executive chair of South African asset manager Sygnia, as saying Musk’s recent tweets on Bitcoin should have prompted an investigation by the U.S. Securities and Exchange Commission.

“We may soon be closer to 50% than you think,” Fred Thiel, CEO of Marathon Digital Holdings Inc., said of Musk’s threshold for clean-energy usage. “There is already a big shift happening as China shuts down Bitcoin mining operations in provinces that were primarily powered by coal.”

Musk has been ping-ponging Bitcoin and other digital assets in recent months. Tesla revealed in February that it has purchased $1.5 billion in Bitcoin and indicated its intention to begin accepting Bitcoin as payment for automobiles. However, in May, the practice was halted owing to worries over the use of fossil fuels in Bitcoin mining and transactions.

Following the Sunday tweet, Bitcoin jumped 9% on Sunday and traded at $39,580, near a two-week high on Monday.

BTC Outgrowing Musk’s Comments

Jonathan Cheesman, head of over-the-counter and institutional sales at crypto derivatives exchange FTX, stated,

Elon’s stance seems to be moderating and providing a target that’s not far away, the rally was already underway as the market speculates about an imminent purchase from MicroStrategy and the G-7 comments on crypto were neutral, even optimistic, about digital innovation.

Tom Lee, Fundrat’s Managing Partner, said Bitcoin has a long way to go from here, considering that it varies by double digits following most Elon Musk social media interaction. He also believes that recent price changes indicate that there is little to no institutional effect on the market at this time.

CEO of Binance, Changpeng Zhao, tweeted that

As more people join the industry and market cap of crypto gets larger, the effect of one individual will diminish.

Many reports argued that Elon Musk’s’ “environment” tweet was based on wrong assumptions as the traditional banking system consumes much more energy than the Bitcoin network.

The report assesses Bitcoins’ yearly power utilization to remain at 113.89 (TWh) per hour, including energy for miner demand, miner power consumption, pool power consumption, and node power consumption. This sum is, at any rate, multiple times lower than the cumulative energy devoured by the banking system (263.72 TWh) and the gold industry (240.61 TWh) on a yearly premise.

As per publication time, Bitcoin price today is $40,460.89 USD with a 24-hour trading volume of $49,407,380,063 USD. Bitcoin is up 12.71% in the last 24 hours.

Also Read : Vitalik Buterin Criticise Tesla CEO in a publication on his blog

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