This week’s beginning has been quite tough on the digital asset industry as most assets saw significant price corrections. Bitcoin’s price correction led to the overtaking of one of the world’s wealthiest men, Elon Musk. Elon Musk, who is Tesla’s highest shareholder, was affected by the crypto price crash that happened recently.
Tesla invested around $1.5 billion in Bitcoin weeks ago, and analysts linked the large inflow as the reason behind the asset’s growth to the $58,000 peak. Although Bitcoin has shown recovery signs as it’s now around the $50,000 range as opposed to $46,000 where it was for an extended period yesterday, Musk has lost some millions to the crash.
BTC’s price crash affects Musk’s worth
Elon Musk’s relationship with Bitcoin seemed controversial before two weeks ago when his company invested over a billion into the digital asset. Some linked Michael Saylor’s advice to the entrepreneur’s investment decision as it was highly unexpected.
Michael Saylor is the CEO of a business intelligence company called MicroStrategy, and the company has one of the world’s largest Bitcoin holdings. The firm bought over a billion worth of Bitcoin in 2020 alone, and in 2022, it’s already buying even more of the digital asset.
Elon Musk and Jeff Bezos have been the two entrepreneurs taking the position as the world’s richest for the past few weeks. Bitcoin’s growth to $58,000 helped Musk regain the position for a while before the dip took a large part of his net worth. Now, Jeff Bezos is the world’s wealthiest CEO of Amazon, one of the world’s leading online stores.
Musk loses position to Bezos
Musk is currently worth a hefty $183 billion, but that is lower than Bezos’s $183 stance. Although many understand that Bitcoin would likely surge soon, no one knows for sure if Tesla’s chief executive would retake the position.
Elon Musk has always been a crypto advocate, and his influence on social media has caused hypes on digital assets like dogecoin, which surged after Musk tweeted on the coin. Musk is the largest shareholder of Tesla, which makes electric cars. The car company’s investment in Bitcoin shows that crypto prices would significantly affect its shares’ worth.
Tesla ended 2020 on a good accord, as the firm’s stock prices grew from around $400 for one to almost $900 by January’s end. This is not surprising as demand for electric cars is now on the rise, as experts believe that electric cars save money and reduces environmental pollution.
Bitcoin might have affected the share prices because, since the investment, the shares dropped from the $900 mark to around $700, making Musk lose around $36 billion in his net worth. On the other hand, when the asset surged to its $58,000 peak, the car company recorded over a billion in profits, as some experts shared.
The firm would have to deal with the asset’s volatility as it drops and gains value at a surprising speed. Not many predicted the price crash, and the decline has led to Musk losing his position as the world’s wealthiest person.