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Is Elon Musk Controlling Bitcoin?

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Is Elon Musk Controlling Bitcoin?

Technoking of Tesla Elon Musk drives up the price of Bitcoin with one tweet. Now, you can buy a Tesla with Bitcoin as a payment option.

Tesla enters the Crypto World

Elon Musk announced unexpected good news to Bitcoin fans. Now, Bitcoin owners can use their cryptocurrency to buy Tesla electric cars. 

“You can now buy a Tesla with Bitcoin,” Technoking of Tesla Elon Musk tweeted on Wednesday.

Musk said that currently the option to choose bitcoin as a payment method only in the United States. But, Musk added that it will be available outside the United States later in 2021.

Dan Ives, an analyst at Wedbush Securities, commented “this is a seminal moment for Tesla and for the crypto world.”

He added “We expect less than 5% of transactions to be through Bitcoin over the next 12 to 18 months however this could move higher over time as crypto.”

Tesla had already given hints on its plan to accept Bitcoin from future Tesla buys. 

Last month, the company mentioned in its annual filing with the Securities and Exchange Commission (SEC) that it is looking forward “to begin accepting bitcoin as a form of payment for our products in the near future … initially on a limited basis.”

Elon Musk Moves Bitcoin Stocks

The price of a single bitcoin climbed nearly 3% to hit $56,242 shortly after Musk’s announcement. This statistic is not new, as Musk tweets have always influenced Bitcoin stocks.

To say Musk influences Bitcoin stocks is an understatement, of course. Elon Musk’s tweets move the cryptocurrency markets. Previously in late January, he changed his Twitter bio to #bitcoin.

Elon Musk's Twitter bio change
Statistics on the influence of Elon Musk’s Bio Change on Bitcoin’s Price and Number of Traders. Source:Forbes

A simple move led to the price of Bitcoin rising by nearly 20% in a matter of hours.

Within approximately one hour of Musk changing his Twitter bio, the price of Bitcoin skyrocketed from around $32,000 to nearly $38,000.

The price dropped to about $36,000 in the subsequent hour, most probably due to some profit-taking. But, Bitcoin then climbed back up to $38,000 over the next hours proving Elon’s power in the cryptocurrency world.

Elon Musk’s impact didn’t only include an increase in the price. Also, the number of traders increased significantly, mostly due to Elon’s popularity on Twitter. 

Trading for Bitcoin in the hours before Musk’s bio change was averaging below 5,000 trades per hour. However, In the 60 minutes following the bio change, trading jumped to more than 20,000 trades before coming back down closer to its normal trading range.

Tesla’s Bitcoin Adventure 

 Tesla’s bitcoin adventure started when the company bought $1.5 billion worth of Bitcoin.

Elon Musk

Bitcoin has doubled in value this year, after more than trebling in 2020, and reached a record of almost $62,000 earlier this month. Bitcoin has risen and fallen and risen and fallen and risen again.

Despite the ups and downs of Bitcoin, Wall Street is increasingly being forced to take digital currencies more seriously. And, following Elon’s tweet Wall Street will have no choice but accept it.

Tesla will hopefully make the Bitcoin price less volatile. At current values after Musk’s tweet, bitcoin is worth $56,242.  The value of one bitcoin is more than enough to buy an entry level Tesla Model 3, which costs a little under $40,000. 

Tesla’s most expensive vehicle, the Model X Plaid, starts at around $120,000 which is slightly more than two Bitcoin.

Moreover, Musk says Tesla will keep any customer crypto payments in the digital realm. Musk’s decision not to convert Bitcoin into dollars will give the cryptocurrency more stability.


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