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Bitcoin climbed to below $ 40,000 on Monday, after another weekend of price swings following tweets from Tesla boss Elon Musk, who brushed aside criticism of his influence in the market and said that Tesla had sold bitcoin but could resume transactions using it.
Bitcoin has been on Musk’s view for months since Tesla announced a $ 1.5 billion bitcoin purchase in February and said it would take cryptocurrency as payment. He later said the electric car maker would not accept bitcoin over concerns over how mining for currency requires high energy consumption and contributes to climate change.
“When there is confirmation of reasonable (~ 50%) clean energy use by miners with a positive future trend, Tesla will resume allowing Bitcoin transactions,” Musk said on Twitter on Sunday.
Bitcoin rose more than 9% after this post, topping its 20-day moving average, and climbed again in Asia to reach $ 39,838.92.
“Musk’s words made bitcoin soar,” said Simon Peters, market analyst at eToro.
It last rose 0.5% to $ 39,189, struggling to escape the relatively narrow trading range this month.
The market was also supported by software company and major bitcoin funder MicroStrategy, which raised half a billion dollars to buy bitcoin, said Bobby Ong, co-founder of the crypto analysis website. CoinGecko.
Bitcoin is up about a third this year, but has collapsed after a record spike above $ 60,000 amid a regulatory crackdown in China and Musk’s seemingly faltering enthusiasm for it. Telsa’s shares are down about 30% since the company bought bitcoin.
Musk’s tweet was made in response to an article based on remarks by Magda Wierzycka, director of cybersecurity firm Syngia, who, in a radio interview last week, accused him of “price manipulation.” and to sell a “large part” of its exhibition.
“This is incorrect,” Musk said. “Tesla only sold around 10% of the holdings to confirm that BTC could be liquidated easily without moving the market.”
Musk had tweeted in May that Tesla “will not sell any bitcoin” and “will not sell any bitcoin”, but investors are eagerly awaiting Tesla’s next earnings update – scheduled for next month – for any disclosure of changes in his position.
Musk took issue with the vast computational power required to process bitcoin transactions, and in early June posted messages appearing to bemoan a break with bitcoin.
This story was posted from an agency feed with no text editing. Only the title has been changed.
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