Bitcoin jumps after Musk says Tesla could use it again

After another weekend of reacting to tweets from Tesla CEO Elon Musk, who fended off criticism over his market impact and indicated that he sold bitcoin but may resume transactions using it, bitcoin hit a two-week high just shy of $40,000 on it Monday.

Since Tesla revealed a $1.5 billion bitcoin acquisition in February and indicated it would accept bitcoin as payment, bitcoin has gyrated to Musk’s views for months. He then stated that Tesla would not accept bitcoin because of concerns about how mining the money consumes a lot of energy and contributes to climate change.

“Tesla will restart permitting Bitcoin transactions when there is confirmation of fair (50 percent ) clean energy usage by miners with a favorable future trend,” Musk stated on Twitter on Sunday. find out more

After that remark, bitcoin jumped more than 9%, breaking over its 20-day moving average, and it surged a smidgeon further in Asia to $39,838.92. find out more

“The market had been experiencing another wave of fall over the weekend… until Elon Musk’s statement about accepting BTC for Tesla purchases shifted sentiment,” said Bobby Ong, co-founder of crypto analytics website CoinGecko.

MicroStrategy (MSTR.O), a software company and a prominent bitcoin proponent, raised half a billion dollars to acquire bitcoin, he claimed, boosting the market. find out more

Bitcoin is up roughly 33% this year, but it has fallen from a record high above $60,000 due to a governmental crackdown in China and Musk’s waning excitement for the cryptocurrency. Since the company’s bitcoin purchase, Telsa’s (TSLA.O) stock has dropped by nearly 30%.

Musk’s statement was in response to an article based on comments by Magda Wierzycka, the CEO of cybersecurity firm Syngia (SYGJ.J), who accused him of “price manipulation” and selling a “large part” of his exposure in a radio interview last week.

“This is false,” Musk stated. “Tesla only sold 10% of its assets to ensure that BTC could be liquidated quickly and without disrupting the market.”

Musk said in May that Tesla “will not be selling any bitcoin” and “has not sold any bitcoins,” but investors are waiting for the company’s following earnings report, which is expected next month, to see if it has changed its mind.

Musk has criticized the massive computational power necessary to process bitcoin transactions, and in early June, he appeared to be lamenting a breakup with bitcoin in a series of tweets. find out more

Other cryptocurrencies were stable following weekend gains, with ether at $2,491 and one-time Musk favorite dogecoin trading for approximately 32 cents on Binance.

Source: Reuters

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