As it approached a critical resistance level of $40,000, Bitcoin (BTC, +14.36 percent) received a boost from a recent tweet from Tesla CEO Elon Musk about Bitcoin mining’s “promising” renewable use.
Musk said in his tweet “Spoke with North American Bitcoin miners. They committed to publish current & planned renewable usage & to ask miners WW to do so. Potentially promising.”
The news is particularly important because Musk’s comments on Bitcoin’s environmental impact on May 13 caused a major sell-off in the cryptocurrency market that intensified last week and continued over the weekend.
On Sunday, Bitcoin fell to just over $31,000. Monday’s rapid recovery occurred as affluent investors’ demand appeared to provide some relief to the battered cryptocurrencies.
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The price had risen to $39,966 within minutes of Elon’s tweet and was trading at $39,700.98 at the time of writing this post.
Following up on Musk’s tweet, Microstrategy CEO, Michael Saylor said “he sponsored a meeting between Musk and a group of bitcoin miners, which resulted in the foundation of the Bitcoin Mining Council, which would encourage sustainability.”
Musk has long been a supporter of cryptocurrencies, assisting in price increases for digital coins like Bitcoin several times in the past year. His cryptocurrency tweets and comments regularly cause prices to rise or fall.
Tesla announced in a February SEC filing that it “had purchased $1.5 billion in Bitcoin and would accept it as payment. The business later said that sales of Bitcoin resulted in a net gain of $101 million during the period, helping to lift net earnings to a new high in the first quarter.”
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