The Talented Mr. Musk
Firstly, let’s go back to May 12. Elon, who had previously bought $1.5 billion in Bitcoin, made an unexpected statement: “We are concerned about rapidly increasing use of fossil fuels for Bitcoin mining and transactions, especially coal, which has the worst emissions of any fuel.” Thus, by clicking on the “Tweet” button, Musk made Bitcoin plunge by 17%.
But why didn’t he come up with an alternative when Tesla was steadily exploring green energy sources? On the contrary, he provoked a sell-off, which was unlikely to benefit the environment.
Logically, many crypto enthusiasts got the impression that Elon was manipulating the market to profit and buy BTC at a low price. Keep in mind that his company has not sold a single Bitcoin since then.
New Laws, new lows
However, Musk’s omnipotence was just one of the tests that Bitcoin had to pass. Less than a week later, China declared war on cryptocurrencies, and ‘the great mining migration’ started.
In June and July, the crypto market was dodging the blows of regulators and looking for a safe haven in El Salvador and Paraguay. Meanwhile, Elon stepped aside and was only occasionally slightly pushing Bitcoin down through comments on tweets.
One way or another, the price of BTC fell below $30,000 on July 21. Some predicted Bitcoin could continue plunging. It was almost a sink-or-swim situation.
A Card up His Sleeve
Naturally, that’s when during the B World cryptocurrency conference, Elon Musk announced that Tesla could ‘likely’ start accepting BTC again, as it was getting greener. A few days later, he also revealed Tesla was holding 42,000 Bitcoins. Two hints were enough for digital gold to skyrocket to $40,000 in a week.
Although there is always room for coincidence, it looks like a well-played game. Musk may have waited for the lowest price to grow earnings.
Further, a favorable environment has been created inside and outside the country. More states started to examine the potential benefits and risks of the crypto, as well as greener means to mine it. Besides, miners are knocking on America’s door, giving it a vantage over the eastern frenemy.
In sum, Elon has it all. He showed he was eco-friendly, purchased an asset at a discount, and, finally, proved he could subjugate the market.
Was it PR or a good market maneuver after all? Only Elon knows.