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Bitcoin skyrockets to $ 40,000, after Tesla announced it will resume accepting BTC as payment once mining is carried out using cleaner energy.
In a Twitter post, Tesla CEO Elon Musk said he wants miners to use about 50% of clean energy, instead of the current 39%. Many investors perked up on this and it claimed that his statements prove Musk's vision on cryptocurrencies.
Back in May, Bitcoin and altcoins collapsed after Musk criticized the digital currency for the fact that miners spend too much energy on its production and support, not to mention it mainly relies on fossil fuels. Musk denied accusations that he is using his influence on social media to manipulate the price of bitcoin, pointing out that Tesla sold only 10% of its assets.
Meanwhile, recent developments in the cryptocurrency market, for example MicroStrategy's placement of $ 500 million bonds and G7's optimistic assessment on digital innovation, suggest that Bitcoin is making a comeback, thus, in the future, a rally may occur in the market. But investors should not rush to conclusions and enter purchases at high prices, because for the market to get a real boost, several technically important events must happen first.
One example is finding an alternative solution to China's closure of several mining farms, which contributed to the decline of Bitcoin in the past weeks.
El Salvador's decision to accept Bitcoin as legal tender also made Bitcoin on a par with dollar. Aside from that, President Nayib Bukele said they are studying other options for mining, more specifically on the use of volcanic energy.
"Our engineers have informed me that they have dug a new well that will provide approximately 95 MW of clean geothermal energy with zero emissions from our volcanoes," Bukele said.
Similarly, Tanzania President Samia Hassan called on the country's central bank to start studying cryptocurrencies more actively. According to her, the era of cryptocurrency and blockchain has come.
"We have witnessed a new digital journey into the world of blockchain and cryptocurrencies. As such, I appeal to the central bank to start working on the study of this direction, as we must be ready for changes to not be caught off guard, "Hassan said.
Although Tanzania is not a country on which the reputation of bitcoin depends, the fact that many developing countries show such interest in cryptocurrencies prove that there is a need for this technology and its development in the future, as it will help far-apart countries become stronger.
All this news is bullish to Bitcoin, so it was able to shoot above $ 40,000. Now, it is nearing $ 41,100, above which is the 200 MA. Being stuck there can create a lot of problems for buyers, so they have to push the quote above it to see a larger jump towards $ 46,700 and $ 52,000. Accordingly, a decline below $ 41,100 will result in another plunge to $ 36,300.
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