As you are well familiar, many cryptocurrencies are extremely volatile, meaning that their prices are subject to frequent changes. One of those cryptocurrencies is the world’s most dominant digital asset – Bitcoin. Back in April 2021, Bitcoin reached an all-time peak of over $63,000, and it is expected that it will go as high as $100,000 by the end of 2021.
When it comes to trading Bitcoin and other cryptocurrencies, for that matter, one forbidden technique that is often used is pump and dump. With this technique, an individual or a group of people purchase large amounts of the cryptocurrency and re-sell it for a higher price.
An interesting fact about this process is that many people often connect it to one of the world’s richest celebrities, Elon Musk. He was asked this question at a recent crypto conference, and he stated that even though he pumps up Bitcoin and other cryptocurrencies, he never dumps. Hence, we wanted to see how Musk manages to pump Bitcoin’s price, but first, let’s see what the goal of pumping and dumping is.
Why do People Pump and Dump Bitcoin?
As you may have concluded by now, the sole purpose of pumping and dumping Bitcoin or any other cryptocurrency is to re-sell it at a higher price and thus, earn a profit. While it is something that is commonly used, this is a forbidden technique. John McAfee is one of the people that got locked up after he motivated his Twitter followers to pump and dump cryptocurrencies.
That is why the best part to purchase and make a profit from cryptocurrencies, Bitcoin included, is to buy them at reputable trading sites and then follow the market fluctuations. In this Bitcoin Profit Review you can learn more about a top trading platform. Otherwise, these sites use advanced AI systems that are able to use the data on Bitcoin from the market and determine how Bitcoin will fluctuate in the near future.
Thanks to these services, thousands of people from all around the world use trading sites daily. The process of registering and trading at the aforementioned platform is simple and takes just a minute.
Now, let’s see how Elon Musk pumped Bitcoin’s price on a few occasions.
The Tesla Purchase
We are going to start things off with the famous Tesla investment, which happened at the beginning of 2021. In February, Tesla invested $1.5 billion in Bitcoin, and Musk announced that the company would accept it as a payment method. The news broke out pretty fast, and Bitcoin’s price was heavily influenced as it managed to pump in the span of a few days.
After the Tesla purchase, Bitcoin jumped from $47,000 to over $50,000 in less than a week.
The B Word Crypto Conference
Elon Musk was a guest at the B-Word crypto conference, which was held at the end of July. While speaking at this conference, Musk stated that he owns Bitcoin and that Tesla is likely to accept Bitcoin as a payment method once again.
Not only that, but he added that he owns Ethereum and Dogecoin, and with the statements, he managed to influence/pump the value of all three mentioned cryptocurrencies. Ethereum was the digital asset that was impacted the most as this cryptocurrency rose by 12% after Musk announced that he owned it.
As you can see, Musk is aware of the fact that he has the influence to pump the price of pretty much every cryptocurrency. A while ago, he even acknowledged the newly-formed DogeCoin with a tweet. After he tweeted a spin on the Baby Shark song with a Baby Doge twist, the cryptocurrency managed to rise in value by more than 700% in a short period. But as Musk stated at B Word, he may pump, but he never dumps.