Bitcoin Pares Gains After Crossing $40K
Bitcoin crossed a strong support level of $40000 late Monday, riding on the quick boost it received the day before from a positive Elon Musk tweet.
The most popular cryptocurrency’s price rose to more than $39,400 in the early hours of Monday, showing a 12.5 percent improvement. And the price crossed $40000 later in the day, and went as high as $40949.
However, it is trading at $39,968 at the time of writing this report, losing its value by about $1000 over the past 24-hours.
The price of Bitcoin, which has been comparatively dormant since the recent set backs, surged by nearly 15 percent after Tesla CEO Elon Musk tweeted Sunday that the electric car company would start accepting the cryptocurrency again once at least half of it can be mined using clean energy.
It appeared to be a salvaging act by the business magnate, whose damaging comment on the same social media platform a month ago sent the prices plunging by more than 17 percent. Elon Musk said on Twitter on May 12 that his car company will not accept the cryptocurrency while selling Tesla vehicles, citing environmental concerns.
Tesla had bought $1.5 billion worth of Bitcoin in February. The next month, environmentalists and investors criticized the car manufacturing company’s offer to its potential customers that it would accept payments in cryptocurrency.
He said at that time Tesla would not sell its Bitcoin holdings, but use it for transactions as soon as mining transitions to more sustainable energy sources.
Bitcoin is mined using high-capacity computers that consume a lot of power, generated with fossil fuels.
Musk’s tweet triggered a significant fall in Bitcoin price from around $54,000 to $46,290 in just two hours, marking Bitcoin’s lowest price in weeks.
In a confidence-boosting statement on Twitter Sunday afternoon, Musk wrote, “When there’s confirmation of reasonable (~50%) clean energy usage by miners with positive future trend, Tesla will resume allowing Bitcoin transactions”.
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