Elon Musk fuels Bitcoin volatility by saying Tesla hasn’t sold stake

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For a second week, the crypto market is dominated by tweets from billionaire Elon Musk.

The head of Tesla Inc sent Bitcoin back over $ 45,000 on Monday after clarifying that the company had not sold any holdings of digital tokens. It’s the latest post that turns prices across the industry and speculation on why the electric car pioneer is putting out crypto missives on Twitter on a daily basis.

“He needs to become aware of the reality that his following tweets can move markets with just one word,” said Antoni Trenchev, managing partner and co-founder of Nexo in London, a crypto lender.

The drama began on Sunday after Musk tweeted out questions about whether Tesla may have already sold its stake. A user named @CryptoWhale had speculated that Tesla had already sold its inventory and said, “With the amount of hate @elonmusk is getting, I wouldn’t blame him.” Musk responded to this tweet with a one-word post that said, “Indeed.”

It was enough to shake traders’ beliefs, and Bitcoin fell 10 percent over the weekend, hitting a new three-month low.

Prices stabilized on Monday, rising 3 percent to $ 45,436 as of 11:12 a.m. in London. Musk’s involvement in crypto was a major driver of the bull market that year, and Tesla’s disclosure of a $ 1.5 billion stake brought legitimacy to virtual currencies. In April, Tesla’s earnings report showed that the company had sold 10% of its Bitcoin holdings. Musk said on Twitter that Tesla was trying to “prove Bitcoin’s liquidity as an alternative to keeping cash on balance sheet.”

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