Crypto fan Musk sold 373 million dollar worth of Bitcoin, but it is unclear whether he made a profit or a loss
Last Updated on 6 November 2023 by CryptoTips.eu
Elon Musk, normally one of crypto’s biggest cheerleaders, was blamed for a Bitcoin crash this week after it was revealed that SpaceX, one of his companies, had written off $373 million from its accounts through the sale of Bitcoin. However, no one knows whether Musk made a profit or a loss on that trade, as SpaceX is a private company.
Subsequently, those allegations were revised when it became clear that falling stock prices in tech, high interest rates and the bankruptcy of Evergrande (the Chinese real estate giant) had also contributed to both crypto and stock markets having a bad week;
The markets are crashing because people assume that @SpaceX sold their #Bitcoin?
— Michaël van de Poppe (@CryptoMichNL) August 18, 2023
Of course they devalue their #Bitcoin value when the markets crash 80% in a year.
Dogecoin
Musk is regarded as one of crypto’s biggest fangirls and he certainly had a huge influence on crypto prices in 2020 and 2021. It is widely accepted that the bull run in the price of Dogecoin in 2020 and 2021 was largely due to Elon Musk himself. Some investors have even taken him to court for this reason.
Elon Musk also has a clear influence on the price of Bitcoin. Back in 2021 for example, the price of Bitcoin surged when Musk announced on Twitter (now X) that he had bought $1.5 billion worth of Bitcoin through his company Tesla, the maker of electric vehicles.
He also thought about allowing payments for Tesla in crypto. Three months later, he gave up on that plan, of course.
Bitcoin fell earlier this year when Musk admitted that Tesla had sold off a large portion of his Bitcoin holdings (for a loss of $200 million).
Now that the Wall Street Journal reported this week that SpaceX, which is a private company and therefore has no stock listing and no public accounting, had also written off an amount of $ 373 million through the sale of Bitcoins, the price of the largest digital asset fell fast.
However, it is still unclear whether Musk made a profit or a loss on that sale, as no one knows at what price SpaceX bought or sold those Bitcoins.
“History shows that the market often reacts sharply to Elon Musk’s actions, implying that this latest revelation could further dampen investor sentiment,” said analyst James Butterfill, head of research at Coinshares.
In this way, Musk indeed continues to strongly influence the price of Bitcoin.
