Key facts:
Elon Musk clarifies that he bought bitcoin for his personal holdings and those of Tesla and SpaceX.
In addition, he acknowledges that he tries to support dogecoin and has bought it.
Billionaire businessman Elon Musk, CEO of Tesla and SpaceX, reaffirmed his bullish view for the bitcoin (BTC) market in an interview with Bloomberg. He also made it known at the meeting that he believes there will be a recession at some point. And he publicly defended himself against the recent lawsuit he received for “inflating” the price of dogecoin (DOGE).
“I have never said that people should invest in cryptocurrencies,” express given the current bearish outlook and the demand it faces. Thus, Elon Musk Responds to Indictment He Faces for Powering Alleged Dogecoin Pyramid Schemeas he strengthens his belief in the cryptomeme and bitcoin.
As BTC and DOGE enthusiast Elon Musk clarified: “Tesla, SpaceX and myself do buy some bitcoin. But it’s a small percentage of our highly liquid assets, so it’s not that significant. I also bought some dogecoin and Tesla accepts dogecoin payments for certain merchandise.
It is worth clarifying that, although Elon Musk says that his investment in BTC does not represent much of his total holdings, his margin is remarkable. Tesla is the world’s second largest bitcoin-holding publicly traded company with a total of 42,902 BTC as of early 2021, valued at around $30,000 – $40,000.
His funds in the cryptocurrency are currently estimated to be at unrealized losses, as BTC is trading close to 20,000. Namely, Tesla continues to hold its bitcoin reserves, even though they have depreciated in the current bear market.
Such a decision shows its long-term bullish conviction, as the company mentioned recently. According to the CriptoNoticias calculator, at this time, his bitcoin holdings represent USD 916 million, while during BTC’s all-time high seven months ago these were valued at more than USD 2 billion.
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Elon Musk reaffirms his support for bitcoin and dogecoin in the bear market
The businessman clarified several issues in the conversation. In addition to noting that he himself and his two companies have invested in bitcoin, he noted that he also bought dogecoin for his personal holdings.. Likewise, he estimated that he tries to support this memecoin, far from being frightened by the demand he faces in this regard.
“I personally try to support dogecoin because I know a lot of people who are not that wealthy who have encouraged me to buy and support dogecoin, so I’m responding to those people,” held Elon Musk.
This comment comes after an American investor sued him last week for USD 258 billion.. He accuses him of having fallen into what he considers “the dogecoin pyramid scheme” that the businessman promoted.
Various analysts have confirmed that Musk’s comments on dogecoin sparked its big price hike last year of more than 1,000%. So does the plaintiff, who warns that the current fall of 93% from its maximum has erased almost all its growth and caused heavy losses of money to its holders.
“A recession is inevitable at some point,” says Elon Musk
As for the current bear market and macroeconomic backdrop, the businessman said: “A recession is inevitable at some point.” Nevertheless, considers that it will probably not be in the short term, despite the fact that some specialists have pointed out that we are entering a recession.
According to analysts, a recessionary terrain would affect the cryptocurrency market, although some, such as Zoltan Pozsnar, believe that it will benefit bitcoin. In this scenario, Elon Musk summarized that Tesla will be reducing its salaried workforce by 10% in the next three months and there are still some unresolved issues to fully acquire Twitter.