Bitcoin hit a two-week high of just under $ 40,000 ($ 53,000) on Monday (June 14) after another weekend responded to tweets from Tesla CEO Elon Musk, who fought off criticism of his market influence and said Tesla had sold Bitcoin but may have resumed transactions with it.
Bitcoin has been surging for months, in Musk’s opinion, since Tesla announced a $ 1.5 billion Bitcoin purchase in February and announced it would trade in the cryptocurrency.
He later said the electric car maker would not accept Bitcoin because of concerns that mining the currency would require high energy consumption and contribute to climate change.
“If there is confirmation of a reasonable (~ 50 percent) clean energy consumption by miners with a positive future trend, Tesla will allow Bitcoin transactions again,” Musk said on Twitter on Sunday.
If there is a confirmation of reasonable (~ 50 percent) clean energy consumption by miners with a positive future trend, Tesla will allow Bitcoin transactions again.
Bitcoin rebounded more than nine percent on the news, topping its 20-day moving average, and rising a tiny bit further to $ 39,838.92 in Asia.
“The market had gone through another round of correction over the weekend … until Elon Musk’s tweet about accepting BTC again for Tesla purchases changed the mood,” said Bobby Ong, co-founder of cryptanalysis website CoinGecko.
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He said the market is also being helped by the software company and major bitcoin backer MicroStrategy, which raised half a billion dollars to buy bitcoin.
Bitcoin is up about 33 percent this year but has collapsed from a record high of over $ 60,000 amid regulatory action in China and Musk’s apparently staggering enthusiasm for it. Telsa stock has fallen about 30 percent since the company’s Bitcoin purchase.
Musk’s tweet came in response to an article based on statements by Magda Wierzycka, head of cybersecurity firm Syngia, who last week accused him of “manipulating prices” and selling “a large part” of his exposure in a radio interview.
“That’s inaccurate,” said Musk. “Tesla only sold ~ 10 percent of its inventory to confirm that BTC could easily be liquidated without market movement.”
This is imprecise. Tesla only sold ~ 10% of its holdings to confirm that BTC could easily be liquidated without moving the market.
If the confirmation of reasonable (~ 50%) clean energy consumption is confirmed by miners with a positive future trend, Tesla will allow Bitcoin transactions again.
– Elon Musk (@elonmusk) June 13, 2021
Musk tweeted in May that Tesla “won’t sell bitcoin” and “hasn’t sold bitcoin,” but investors are eagerly awaiting Tesla’s next earnings update – due next month – for any disclosure of changes to its position.
To clear up speculation, Tesla did not sell Bitcoin
– Elon Musk (@elonmusk) May 17, 2021
Musk has grappled with the tremendous computing power required to process Bitcoin transactions, posting news in early June that appeared to lament a breakup with Bitcoin.
Other cryptocurrencies remained stable after the weekend gains, with ether buying at $ 2,491 and Musk’s one-off Dogecoin buying around 32 US cents on the Binance crypto exchange.
