Elon Musk Admits He Still Owns Cryptocurrencies; Price of Ethereum Surges

The price of Ethereum surged Wednesday afternoon after Elon Musk, the CEO of Tesla and SpaceX, revealed he owned the cryptocurrency at the Crypto Council for Innovation's The B Word conference.

(Photo : Maja Hitij/Getty Images)
Tesla CEO Elon Musk admits he still owns cryptocurrencies.

Elon Musk Shows Support to Cryptocurrency

In a recently published article in CNBC, Elon Musk repeated his support in cryptocurrency. Despite its environmental impact, he said, "One thing you do need to watch out for with crypto, especially bitcoin, using proof of work, using energy that's a bit too much and not necessarily good for the environment."

Elon Musk also said that the only publicly listed stock he owns at this moment is Tesla's, as well as bitcoin, dogecoin, and Ethereum. Musk went on to say that aside from Tesla, the only major thing he owns is SpaceX and that both of these businesses were founded by him.

According to Musk, both Tesla and SpaceX now hold bitcoin and no other cryptocurrency. Tesla will likely resume accepting bitcoin for transactions as bitcoin mining is increasingly fueled by renewable energy, as reported by BBC News.

Prices of Bitcoin, Etherium, and Dogecoin Surge After Musk's Announcement

According to CoinDesk, Bitcoin has risen over 7 percent to $32,200, while ether, the currency connected to the Ethereum network, has risen to $1,980.8. Dogecoin, on the other hand, increased by almost 9% and went up to $0.18. Other digital currencies such as XRP, Cardano, and Uniswap have all increased by 6-10% in the past 24 hours.

Musk addressed the future of Bitcoin with other supporters Cathie Wood, head of Ark Investment Management, and Jack Dorsey, chief executive officer of Twitter Inc. and Square Inc, at the Crypto Council for Innovation's "The B Word" conference.

Meanwhile, after Musk's remark, Ethereum, which had been rising all day, hit a new high for the session. It was up more than 12 percent, close to that day's highs. The price of Ethereum increased on Wednesday afternoon when Elon Musk, the CEO of Tesla and SpaceX, revealed that he owned the cryptocurrency.

Bitcoin Price Increase to More Than Eight Percent

As of 2:27 p.m. in New York on Wednesday, the biggest digital currency has risen by more than 8 percent and went up to about $32,270. Other cryptocurrencies, such as Ether and Dogecoin, were also up; the Bloomberg Galaxy Crypto Index was also up.

Naeem Aslam, a chief market analyst with Ava Trade Ltd., said, "The fear in the market was that if Bitcoin breaks below the $30,000 mark, the price will move lower violently. In reality, that is not what we have seen. The Bitcoin price has been stable, and we have not seen any panic selling," according to a published article in ALJAZEERA.

Cryptocurrencies Struggle Since Mid-May

Since mid-May, the market value of Bitcoin and other cryptocurrencies has plummeted by $1.3 trillion. Bitcoin has encountered several challenges, including increased governmental attention in China, Europe, and the United States, as well as worries about the amount of energy required by the computers that power it. Speculative investments have also grown less popular among investors.

According to Aslam of Ava Trade, Bitcoin may yet challenge the $25,000 support level in the coming weeks. Steen Jakobsen, chief investment officer at Saxo Bank, said that a break over $32,000 would signal a bigger rebound.