In recent years, he has gained traction in the world of cryptocurrency, and it has caused a stir in cryptocurrencies such as Bitcoin and Dogecoin.
With many people trying to succeed in world businesses, it is no surprise that Musk has become the image of wealth and luxury.
His net worth has reached over $230.8 billion as of July 2022, and recently, he even acquired ‘Twitter’ for $44 billion but eventually terminated this bid over the threat of a lawsuit.
Everyone who is studying the market, both stocks and cryptocurrency alike, are curious about what his next move would be.
In this article, we have organized everything you need to know about Elon Musk and Bitcoin and his impact on the crypto market.
How Musk’s Bitcoin Investment Via Tesla Kickstarted the Bull Market
Although Musk haven’t literally kickstarted the bull market, he can be attributed as one of the main factors that helped Bitcoin reach a new all-time high, alongside the economic recovery from the pandemic and the growing support from the mainstream market.
The billionaire often tweets about various crypto and has been known to impact their value directly. One of the cryptocurrencies Musk has promoted numerous times is Bitcoin, where he often tweets about it and usually leads to a value increase.
Tesla said in the recent filing with the SEC that by the end of 2021, its holding reached almost $2 billion in Bitcoin alone.
For a brief moment, Tesla even accepted Bitcoin as a form of payment but halted it last May 2021 due to environmental concerns causing the price to drop by around 15 percent.
Before it was halted, Tesla attracted many crypto investors to buy Bitcoin. Just like most crypto tradings, the gains and losses are not a surprise as the value of Bitcoin fluctuated and increased over the last few quarters.
While the questions about the solidity of cryptocurrencies continue to exist in the market, because of Tesla, Coinbase became the first major crypto company to go public in the US.
Tesla Sheds 75% Of Its Bitcoin Holdings
Just two months after selling a portion of its Bitcoin holdings, Tesla has reportedly dumped almost three-quarters of the remaining stash, according to Musk in a recent interview with the Washington Post.
Amid pressure from factory shutdowns, the electric vehicle maker just sold a whopping $936 million worth of bitcoin, which is 75% of its original $1.5 billion Bitcoin investment. This move prompted the overall crypto market value to drop significantly.
Musk states that the reason for the recent BTC sell-out was the uncertainty of when the Covid Lockdowns in China would alleviate. “We look to increase our Bitcoin holdings in the near future,” Musk said.
“So, this recent move shouldn’t be interpreted as a reduction in our long-term confidence in the crypto markets.”
Elon Musk, the Dogefather
Known for his direct influence in the crypto market as one of the wealthiest men in the world, Elon Musk is also dubbed the Dogefather. It started in 2021 as a joke when Musk tweeted about a meme cryptocurrency called Dogecoin. It essentially started as a ‘meme coin.’
However, people began to take Dogecoin seriously and made a market for it with thousands of buyers online. As of today, the current market value of Dogecoin is around $8.8 billion, and its price is at $0.069.
It was further set in stone in the crypto market as Musk made a satire tweet about using his SpaceX rockets to put physical Dogecoin on the moon, literally.
In an SNL promo tweet last April 2021, Musk dubbed himself The Dogefather. However, he clarified later on that it was not his goal to convince people to buy crypto and instead urged everyone to invest in actual money and not on ‘joke crypto’.
Last March 2022, Elon Musk unveiled his plan for Tesla to take it to the extreme in the next installment for artificial intelligence and automaker operations. Musk tweeted that there is a need to shift away from the harmful usage of fossil fuels and AI.
Musk’s plan, which he called the Plan Deux discussed Tesla’s plan to develop battery storage and launch new models for pickup trucks and SUVs. The massive wave of new products is set to be announced in 2023.
At the Tesla Cyber Rodeo event, Musk also announced that they are dedicated to making a futuristic-looking vehicle called the ‘dedicated robotaxi.’
Aside from vehicles, Tesla also announced that they plan to start production of the Optimus humanoid robot next year but did not include more details about the product.