Bitcoin (BTC) hit a two-week high on Monday and peaked just short of $40,000 (£28,382.88). The rally comes less than 24 hours after Musk tweeted Tesla would begin to accept cryptocurrency once it was given reassurances over Bitcoin’s environmental impact.
The announcement also comes a month after the 49-year-old Tesla boss said the firm was suspending vehicle purchases using Bitcoin amid concerns over the impact of the mining process on climate change.
Following his post on Sunday evening, the value of Bitcoin rose by nine percent and reached a high of $39,838.92 (£28,259.74).
Musk has faced criticism over his erratic tweets on cryptocurrency and its effect on trading markets.
In his tweet, Musk also confirmed Tesla had sold about 10 percent of its holdings to try and demonstrate Bitcoin could be liquidated easily without moving the market.
Musk responded to remarks from Magda Wierzycka, head of cybersecurity firm Syngia, who accused him of “price manipulation” and selling a “big part” of his exposure.
Musk wrote: “This is inaccurate. Tesla only sold ~10% of holdings to confirm BTC could be liquidated easily without moving market.
“When there’s confirmation of reasonable (~50pc) clean energy usage by miners with positive future trend, Tesla will resume allowing Bitcoin transactions.”
In a tweet on May 12, Musk said: “We are concerned about rapidly increasing use of fossil fuels for Bitcoin mining and transactions, especially coal, which has the worst emissions of any fuel.
“Cryptocurrency is a good idea… but this cannot come at great cost to the environment.”
Express.co.uk does not give financial advice.