Is Elon Musk Manipulating the Crypto Market Again?

3 months ago 23
  • Sygnia CEO criticized Elon Musk for alleged Bitcoin pump and dump.
  • Many people started wondering if Musk is manipulating the crypto market again.

Many times, Elon Musk caused the crypto market to crash with his tweets. He pushed the market to drop more than 20% in the last weeks. This triggered some people to criticize the Tesla CEO.

Recently, Sygnia CEO criticized Elon Musk for alleged Bitcoin pump and dump. According to Sygnia CEO, Musk purposely pumped up the price of Bitcoin. He said that Musk did it by writing tweets, including those mentioning Tesla’s $1.5 billion BTC purchase, then sold a big part of his exposure at the peak.

Moreover, Elon Musk didn’t waste time and took to Twitter to deny selling at the peak. Musk said,

“This is inaccurate. Tesla only sold ~10% of holdings to confirm BTC could be liquidated easily without moving market. When there’s confirmation of reasonable (~50%) clean energy usage by miners with positive future trend, Tesla will resume allowing Bitcoin transactions.”

Let’s note that the 10% of that initial purchase that Tesla sold was during Tesla’s quarterly earnings call in April. It’s at the time that Musk said Tesla made the sale to prove the liquidity of BTC as an option to holding cash on the balance sheet. However, the firm saw its quarterly earnings boosted by $101 million accounting.

Furthermore, the fact that Elon Musk said Tesla will allow BTC transactions when there is a reasonable clean energy usage by miners, got people wondering if he is manipulating the market again.

Peter Schiff also replied to Musk’s denial about manipulating the market. Schiff said it’s easy to dump Bitcoin when you’re pumping up the price and suckering in buyers with market manipulating Tweets. Also, he added that Bitcoin transactions were just a gimmick anyway to create a false impression.

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