Dave Portney says Elon Musk dumped Bitcoin (BTC): Musk replies

By: Ali Raza
Ali Raza
Ali plays a key role in the cryptocurrency news team. He loves travelling during his spare time and enjoys… read more.
on Apr 27, 2021
  • Elon Musk was accused of deliberately engineering Bitcoin’s rise to dump it for profits.
  • Elon Musk says Tesla’s sale of its 10% Bitcoin holdings was to prove the liquidity benefits of Bitcoin,
  • The activities of Tesla around Bitcoin contributed towards the rise of the token to unprecedented levels.

Elon Musk and Tesla Inc. have come under fire lately regarding their role in Bitcoin’s rise this year. Recently, founder of Barstool Sports Dave Portnoy accused Musk of profiting from a deliberate act of influencing the price of Bitcoin (BTC). He said Musk’s public comments in support of Bitcoin (BTC) were to cause a rise in the token, with plans to dump it when it eventually rises.

Musk says he has not sold any of his Bitcoins

However, in response to Portnoy’s accusations, Musk stated that he has not sold any of his Bitcoins. He also clarified why Tesla sold some of its Bitcoin holdings recently.

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According to Tesla CEO, it was “essentially to prove liquidity of Bitcoin as an alternative to holding cash on balance sheet.”

Tesla bought more than $1 billion of Bitcoins in Feb 2021. But the company recently sold about 10% of the Bitcoin holdings, generating $101 million income in the process.

Tesla’s Bitcoin influence

At the time of writing, Bitcoin was trading at $54,503, after hitting an all-time high of $64,870 in mid-April. Still, the current price is seen as very high, considering that it was still below the $10,000 resistance mark by this time last year.

Apart from the influx of retail and institutional traders, the electric vehicle maker also contributed to the rise of Bitcoin when it announced the acceptance of cryptocurrency as a payment option for its car models.

Musk’s and Tesla’s interest in Bitcoin is one of the reasons why other companies started showing increased interest in the world’s most valuable cryptocurrency.

While some others are still skeptical about the token and its future viability, the company says it believes in its long-term value. Tesla has been one of the major supporters of Bitcoin, and its acceptance by the company has led to increased adoption.

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