Elon Musk Endorsement Suddenly Sends Bitcoin Price Higher

Bitcoin price rose by 0.5%, leading a surge in cryptocurrencies, fueled by concerns over excessive government spending and former U.S. President Donald Trump's surprising comments on crypto.

Elon Musk has called crypto "interesting and probably valuable."
The price of Bitcoin is nearing $70,000, just shy of its all-time high of $73,000 achieved earlier this year, thanks to BlackRock's push in the bitcoin and crypto space.

Amid this, a renowned billionaire investor anticipates a market "melt-up," while Tesla CEO Elon Musk has described crypto as "interesting and likely valuable."

"I think cryptocurrency is an interesting and probably valuable bulwark against centralized control," Musk said, speaking at a campaign rally for former U.S. president Donald Trump in Pittsburgh when asked by an attendee whether the cryptocurrency XRPXRP 0.0% could be incorporated into the financial system.

"Crypto inherently promotes individual freedom," Musk stated, clarifying that he wasn't endorsing XRP or any particular cryptocurrency.

He later mentioned that he "wasn't actively involved in crypto," sidestepping a question about whether blockchain technology could be used in future elections to mitigate voter fraud.

Musk played a significant role in the Bitcoin and crypto market surge during the COVID era, frequently sharing his thoughts on the sector. Recently, however, he has shifted his focus to criticizing U.S. spending, warning that the country is heading toward "bankruptcy."

Musk has agreed to lead a proposed Department of Government Efficiency suggested by Trump, humorously naming it "Doge," after the meme that inspired the dogecoin cryptocurrency.

Tesla is known to hold almost 10,000 bitcoin

Musk's Tesla, believed to hold approximately 11,500 bitcoins valued at nearly $800 million, recently transferred its bitcoins to a new address—its first move in two years, according to blockchain analysts at Arkham Research.

While Tesla is known to own nearly 10,000 bitcoins, Arkham's analysis has identified 68 addresses that they believe are controlled by Tesla, bringing the total to 11,500 bitcoins.

The transfer is likely related to either an over-the-counter sale or preparations for one, though some speculate it may have been moved to a different custodial wallet for secure storage.

In early 2022, Musk sold a significant portion of the $1.5 billion in bitcoin added to Tesla's balance sheet in early 2021 to ensure a quarterly profit. Tesla is set to release its third-quarter results for 2024 after the market closes on Wednesday, October 23.

Tesla moves $765 million of bitcoin to mystery wallet

Tesla has quietly moved over $750 million worth of bitcoin into undisclosed crypto wallets. According to blockchain analytics firm Arkham Intelligence, approximately $765 million in bitcoin acquired by the electric vehicle manufacturer has been transferred to unknown wallets.

It remains unclear whether this move is part of a plan to sell the holdings or for other purposes. The Independent has reached out to Tesla for clarification.

Tesla CEO Elon Musk, a prominent advocate for cryptocurrency, purchased $1.5 billion in bitcoin in 2021 using the company’s cash reserves. At that time, bitcoin was trading between $30,000 and $40,000, but Musk later sold off most of Tesla's bitcoin holdings in 2022 when prices were around $20,000 per coin.

Currently, bitcoin is trading near its all-time high of $74,000, having surged by nearly a third since early September. This rally has been fueled by positive sentiment in the U.S. ahead of next month's presidential elections, with both candidates appealing to crypto investors during their campaigns.

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