Bitcoin (BTC, +14.36%), which was already up for the day, got a lift from a recent tweet from Tesla CEO, Elon Musk, about Bitcoin mining’s “promising” renewable use, as it approached a critical resistance level of $40,000.
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 revelation is especially significant because it was Musk’s statements on May 13 about Bitcoin’s environmental effect that sparked a massive sell-off in the crypto market that accelerated last week and persisted throughout the weekend, with Bitcoin falling to just over $31,000 on Sunday. Monday’s fast recovery occurred as demand from affluent investors appeared to have offered respite to the bruised cryptocurrencies.
Within minutes of Elon’s tweet, the price had risen to $39,966 and was trading at $39,700.98 at the time of writing this article.
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 proponent of cryptocurrencies, assisting in price rallies for digital coins such as Bitcoin several times in the past year. His cryptocurrency tweets and comments frequently send prices soaring or plummeting.
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.
Elon Musk continues to play with Bitcoin, turning to Twitter to express support for what he claims is a move by miners to make their operations more environmentally friendly. Bitcoin rose as high as 19 percent to trade at $39,000 as a result of Musk’s comment. On Sunday, it fell as low as $31,132 but this recent support may push the price to outstanding highs if the momentum continues.
At the time of writing this article, the cryptocurrency market was bullish with +18.01% according to Coinbase.