Elon Musk’s Tesla tweet drives Bitcoin above $40,000 for the first time since May

Tesla Suspends Bitcoin Payments, but it May not be because of Coal-powered Bitcoin Mining

The price of Bitcoin has now surpassed $40,000 for the first time in more than three weeks. Bitcoin had previously been unable to break above the $40,000 mark since May 21.

However, the flagship cryptocurrency has jumped by 13% to currently trade at $40,539 off the back of a bullish run triggered by Elon Musk’s recent Tesla tweet. The world’s second-richest man and SpaceX CEO revealed that Tesla will resume Bitcoin payments for its electric cars if energy concerns were addressed:

Tesla only sold ~10% of holdings to confirm BTC could be liquidated easily without moving market. When there’s confirmation of reasonable (~50%) clean energy usage by miners with positive future trend, Tesla will resume allowing Bitcoin transactions.

Elon Musk

Bitcoin’s price rose by 9% to trade at $39,580 following Elon Musk’s tweet. Investor confidence shot up as traders moved to purchase more bitcoin. Although Musk had disclosed that the automaker sold about 10% of its 43,000 BTC holdings, this failed to influence the upsurge in prices.

Bitcoin’s latest rally may also have been helped by El Salvador’s move to adopt bitcoin as legal tender for everyday transactions. On another hand, Microstrategy’s plan to purchase an additional $500 million worth of bitcoin appears to have incentivised several investors as well.

Read: El Salvador has become the first country in the world to adopt bitcoin as legal tender

Other crypto prices have bounced back amid positive market sentiment. Dogecoin, BNB and Ethereum prices have each gone up by 6.1%, 11.5% and 8.7%.

Elon Musk has been a backer of meme currency Dogecoin

While traders are seemingly sustaining a buying frenzy, Musk’s tweet may not change much in the scope of the market outlook for now.

There have been conflicting reports over how much electricity channelled towards bitcoin mining is from renewable energy sources. For instance, a report claims that 74% of bitcoin mining uses renewable energy, while another study posits that only 39% of bitcoin’s total energy consumption comes from renewables.

So, this raises the question of just how long it will take before Bitcoin mining is confirmed to be powered by at least 50% renewable energy.

Meanwhile, Tesla’s suspension of bitcoin payments remains in effect. However, Musk’s disclosure perhaps lends some credence to the argument that the crypto space is not by any means close to suffering a total meltdown despite regulatory and cybersecurity concerns.

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