Ethereum price shoots up after Elon Musk reveals he personally invested in bitcoin rival
The price of Ethereum (ether) has shot up after Elon Musk revealed that he personally invested in the cryptocurrency.
The technology billionaire was speaking at The ₿ Word conference on Wednesday, alongside Twitter CEO and prominent crypto advocate Jack Dorsey, with his comments pushing the bitcoin rival above $2,000.
“Bitcoin does some things well, and it’s evolving… Usability for the average person is not great but it has a lot of potential,” he said.
Earlier this year, the Tesla boss made headlines after announcing that his company would accept bitcoin as a form of payment for electric cars, however subsequently backtracked after citing environmental concerns about bitcoin’s network.
The cryptocurrency has since shifted more towards renewable energy sources following a major crackdown in China on bitcoin mining operations, which were largely powered by coal-fuelled power plants.
Tesla also announced a $1.5 billion investment into bitcoin in February, making it the world’s second largest corporate investor behind the software firm MicroStrategy.
A small portion of this was subsequently sold off but the majority continues to be held by Tesla despite the recent price slide.
After reaching an all-time high above $64,000 in mid April, bitcoin’s price has fallen to around half its peak value and is currently trading at just above $32,000.
Market movements have often been attributed to comments made by Mr Musk, with the price surge and crash both coinciding with Tesla’s acceptance and rejection of the cryptocurrency.