Bitcoin Price Rallies After Tesla Billionaire Elon Musk Sparks Wild Speculation He’s Buying Bitcoin
Bitcoin and cryptocurrency markets were braced for a bombshell from Tesla's TSLA +1.2% first set of results since buying $1.5 billion worth of bitcoin. And Elon Musk didn't disappoint.
Tesla revealed it sold 10% of its bitcoin holdings in March, collecting $101 million from the sale and helping the electric car maker land its seventh consecutive profitable quarter. The news, initially sending shockwaves through the cryptocurrency community, was somewhat tempered by Musk's defense that the sale was only to demonstrate bitcoin's "liquidity."
The bitcoin price, after slightly sinking on the news, was then boosted by Musk's comments on Twitter when he suggested he's accumulated his own personal bitcoin holding.
"I have not sold any of my bitcoin," Musk said via Twitter, responding to accusations made by Barstool Sports founder Dave Portney that Musk dumped Tesla's bitcoin to make a "fortune."
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It's not known exactly how much bitcoin or other cryptocurrency Musk owns. Back in 2018, Musk said that he owns "literally zero cryptocurrency, apart from .25 bitcoin"—which would be worth almost $14,000 at today's prices.
"So, Elon Musk personally owns bitcoin?" asked one popular bitcoin fan account on Twitter.
The bitcoin price, after crashing under $50,000 per bitcoin last weekend, has rebounded this week with its rally picking up speed following the Telsa and Musk revelations. The bitcoin price soared toward $55,000, again making the total 18.6 million bitcoin tokens in circulation worth over $1 trillion.
The 2021 bitcoin rally, that's seen the bitcoin price double from just under $30,000 at the turn of the year, has been heavily amplified by Musk and Tesla.
While Musk has been a high-profile and vocal supporter of bitcoin and other cryptocurrencies for years, it was just recently that Tesla added bitcoin to its balance sheet and then began accepting payment in bitcoin.
"So far, [bitcoin] has proven to be a good decision, a good place to place some of our cash that’s not immediately being used for daily operation," Tesla chief financial officer Zachary Kirkhorn, whose official job title is "master of coin," said on the company's earnings call.
Tesla's buying of bitcoin, following in the footsteps of U.S. business intelligence company MicroStrategy, forced others to begin taking bitcoin seriously as a store of value and alternative to cash reserves.
Bitcoin has, meanwhile, been boosted by the long-awaited emergence of institutional support from Wall Street, kickstarted by big-name investors who named bitcoin as an inflation hedge last year.
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