March 4, 2024

How will Elon Musk's Tesla investment affect Bitcoin?

How will Elon Musk's Tesla investment affect Bitcoin?

Elon Musk's Tesla invested $1.5 billion in Bitcoin. In the future, it intends to integrate the firstcryptocurrency as a means of payment for products. Against the backdrop of the newsBitcoin hits a new all-time high breaking the $ 46,000 level.

Let's analyze the opinions of experts on how this will affecton the dynamics of bitcoin, and whether the previous tweets of Mask, against which the price of the asset was growing all the time, will raise questions from the regulators. They disagreed in assessing the legality of Elon Musk's tweets about Dogecoin and Bitcoin, after which the coins grew in value.

According to investor Dmitry Machikhin, such messages are the private opinion of a person not affiliated with a digital asset, and therefore, from the point of view of the law, it is impossible to find fault with Musk's Twitter.

“We are talking about decentralized assets, they are notare securities within the meaning of the US Securities and Exchange Commission (SEC) and are exempt from regulation of pump&dump schemes. Let’s say, if Musk writes: “Sell Tesla shares, I’m tired of all this,” and after that the shares fly down, where they are bought back, then Musk will be invited to the SEC the very next day.”- he explained.

Grigory Klumov, the founder of the stable cryptocurrency platform Stasis, agrees with him:

"Anything that is not prohibited is permitted."

A well-known trader known as Whale Panda suggested that Musk mentioned Dogecoin so often in his tweets because he could not write too much about Bitcoin - "it would get him in trouble."

RoboForex Lead Analyst Dmitry Gurkovskyreminds that Musk's access to a large audience is able to create excitement around an asset, be it cryptocurrency, GameStop shares or the manufacturer of the Cyberpunk 2077 game - CD Projekt. As a rule, after a large-scale growth, these assets were adjusted towards the previous values.

"This situation is definitely a head-scratcherpain" for regulators, as they need to assess how much a message violates existing regulations and whether it is published for personal gain. In 2018, the SEC fined Musk $20 million for his tweets and forced him to resign as chairman of Tesla. This is probably not the last fine a businessman will receive for messages on social networks.”, - suggested Gurkovsky.

Member of the Commission on Legal Support of DigitalEconomics of the Moscow branch of the Russian Bar Association Yuri Brisov believes that if bitcoin participates in transactions upon receipt of investment profits, then such transactions may fall under the law on stock exchanges and securities.

The expert did not rule out that the SEC may regard Elon Musk's tweets as a broker's activity without registration or an activity that violates the law on supply and advertising of securities.

“The offender can also be sued in private if the person who followed his advice suffered losses. The claim can be collective, from several victims at once "- explained Brisov.

Representatives of the cryptocurrency community are convinced that Tesla's investment in bitcoin will attract new investments from large players to the industry.

Anthony Pompliano, co-founder of venture capital firm Morgan Creek Digital, is confident that corporations will now definitely come to the market.

Cameron Winklevoss, co-founder of Winklevoss Capital and bitcoin exchange Gemini, called Tesla's investment in bitcoin a forward-looking move.

His brother Tyler noted that the company's investment in Bitcoin confirms that cash is "junk", as Tesla chose to "exchange it for good money."

Former Head of the Office of the Comptroller of the CurrencyAddressing the US Treasury, Brian Brooks said that Tesla’s investment in Bitcoin is “exciting news” for the crypto industry. For other people, “this is a little scary news,” since it indicates the depreciation of world currencies.

"Bitcoin is potentially a much more stable source of value in the long run.", Brooks explained.

Potential acceptance of bitcoins asmeans of payment for Tesla products is undoubtedly a positive driver for the growth of the first cryptocurrency, adds Dmitry Gurkovsky, leading analyst at RoboForex:

“Perhaps, following Tesla, other companies included in the S&P 500 index will seriously think about such integration.”

Head of data analysis department at CEX.IO Broker Yuri Mazur notes that the lightning-fast reaction of the market and the achievement of a new all-time high by bitcoin once again indicated the potential of the first cryptocurrency.

"Everything goes to the fact that the upward trend will continue, and in February the price of the asset may rise to $ 50,000", - he predicts.

The nearest target mark Mazur calls $ 48,051:

"It can be quickly overcome if a new wave of investing in bitcoin from the corporate segment follows."

The founder of the stable cryptocurrency platform Stasis, Grigory Klumov, adds that it will be possible to talk about the bitcoin bubble at the level of $ 500,000 - $ 1,000,000 per coin.

Where is it more profitable to buy bitcoin? TOP-5 crypto-exchanges

For a safe and convenient purchase of cryptocurrency, we have prepared a rating of the most reliable and popular cryptocurrency exchanges that supportDeposit and withdrawal of funds inrubles, hryvnias, dollars and euros.

The most reliable platforms with the largest cash turnover have been for several yearsthe largest cryptocurrency exchange in the world is Binance.Binance is the most popular crypto exchange in the CIS, as it hasmaximum trading volumes and supports transfers in rubles from bank cardsVisa / MasterCardand payment systemsQIWI, Advcash, Payeer.

Especially for beginners, we have prepared a detailed guide: How to buy bitcoin on a crypto exchange for rubles?

# Cryptocurrency exchange Official site Site evaluation
1 Binance (Editor's Choice) 9.7
2 OKEx 7.4
3 Exmo 6.9
5 Huobi 6.5
5 Yobit 6.3

The criteria by which the rating is set in our rating of crypto-exchanges:

  • Work reliability— stability of access to all functions of the platform, including uninterrupted trading, deposits and withdrawals of funds, as well as the duration of the market and daily trading volume.
  • Commissions– the amount of commission for trading operations within the platform and withdrawal of assets.
  • Feedback and support– we analyze user reviews and the quality of technical support.
  • Convenience of the interface– we evaluate the functionality and intuitiveness of the interface, possible errors and failures when working with the exchange.
  • Platform Features– availability of additional features — futures, options, staking, etc.
  • final grade– the average number of points for all indicators determines the place in the ranking.

How will Elon Musk's Tesla investment affect Bitcoin?