Bitcoin Jumps after Elon Musk Says Tesla May Resume Buying
Bitcoin jumps after Elon Musk said in a Tweet that Tesla may resume using the digital asset for its transactions, the statement made to defend its position on the crypto asset. The largest digital asset crossed the $40,000 level on Monday as investors savour Musk’s Tweet which whoops positive trading sentiment.
The oldest digital asset more than 12% uptrend reported in the last 24 hours lifted the crypto market capitalisation to $1.73 trillion, gaining more than 14% in the same period.
Earlier, some crypto analysts had pushed that Bitcoin has gradually but consistently lifted from $31,000 to levels near $40,000, noting that once it breaks resistance, it could be on its way up despite Chinese authority crackdown.
Though, crypto traders recognise that the flagship cryptocurrency has not entirely broken above the resistance at $40,000, especially with immense resistance presented by the 200 Simple Moving Average on the four-hour chart.
At the time of writing, BTC trades at $40.500 as Bitcoin’s uptrend seems intact for now.
Market signals shows that support at $38,000 remains key to sustaining the uptrend. A break above $40,000 would be a significant milestone in light of the recent frequent retracements and may trigger immense buy orders, bolstering the price higher.
Bitcoin has gyrated to Musk’s views for months since Tesla announced a $1.5 billion bitcoin purchase in February and said it would take the cryptocurrency in payment.
He later said the electric car maker would not accept bitcoin due to concerns over how mining the currency requires high energy use and contributes to climate change.
“When there’s confirmation of reasonable (~50%) clean energy usage by miners with positive future trend, Tesla will resume allowing Bitcoin transactions,” Musk said on Twitter on Sunday.
Bitcoin BTC-USD, which jumped nearly 10% on Sunday, breaking above its 20-day moving average, was up 4.3% on Monday at 40,692.27, its first foray above $40,000 in more than two weeks.
The digital asset had jumped by about 40% in 2021 but has collapsed from a record peak above $60,000 amid a regulatory crackdown in China and Musk’s apparently wavering enthusiasm for it.
Musk’s tweet was made in response to an article based on remarks from Magda Wierzycka, head of cybersecurity firm Syngia SYG , who in a radio interview last week accused him of “price manipulation” and selling a “big part” of his exposure.
“This is inaccurate,” Musk said. “Tesla only sold ~10% of holdings to confirm BTC could be liquidated easily without moving market.”
Musk had tweeted in May that Tesla “will not be selling any bitcoin” and “has not sold any bitcoin” but investors are keenly awaiting Tesla’s next earnings update – due next month – for any disclosure of changes to its position. Musk has taken issue with the vast computing power required to process bitcoin transactions and in early June posted messages appearing to lament a breakup with bitcoin.
Bitcoin Jumps after Elon Musk Says Tesla May Resume Buying
