Another Musk pump? Bitcoin surges to a three-week high after Tesla CEO’s tweet
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Bitcoin has jumped to a three-week high, postponing a possible “death cross” by two weeks and reviving hopes that the crypto bull market has much further to run.
BTC jumped over US$40,000 for the first time since May 28 around 11 last night (Sydney time). It dropped back down a few hours later, reaching a nadir of US$39,400 around 5am, but at 11.30am was changing hands at US$40,326, up 2.8 per cent in the past 24 hours.
In the past week Bitcoin is up 20 per cent – making it the third-best performing token in the top 100, according to Coingecko.
Sentiment has been turning bullish ever since El Salvador adopted Bitcoin as tender last week, but some were crediting this tweet by Elon Musk with boosting the market.
This is inaccurate. Tesla only sold ~10% of holdings to confirm BTC could be liquidated easily without moving market.
When there’s confirmation of reasonable (~50%) clean energy usage by miners with positive future trend, Tesla will resume allowing Bitcoin transactions.
— Elon Musk (@elonmusk) June 13, 2021
Elon Musk says Tesla could accept #bitcoin and the price jumps 4k… We really gotta sort this out guys 🤣
— Layah Heilpern 🎬 (@LayahHeilpern) June 14, 2021
But there were plenty of other possible catalysts for the price jump, including a Bitcoin network upgrade known as Taproot being “locked in” over the weekend; Microstrategy yesterday completing a US$500 million bond offering to add to its existing stash of 92,089 BTC; and other countries including Mexico and Tunisian considering becoming more crypto-friendly.
Actually the price was already going up.elon just added that in the middle of the rally to make it seem like he was the one who gifted us with it..all bullshit. This is from country’s adoption of btc in elsalvador and spreading around the world and the China miner debacle.
— Vitbit (@Vitbit5) June 14, 2021
Whatever the reason, the crypto market was firmly in the green this morning.
Ethereum was trading for just under US$2,600, up 3.1 per cent in the past 24 hours.
Just eight of the top 100 coins were in the red, with LEO Token down the most, 10.6 per cent in the past 24 hours. Theta Fuel had fallen 8.5 per cent after its strong gains last week.
Amp was the biggest gainer, up 35.6 per cent to US7.9c. The token hit an all-time high of US8.2c on Friday. It is used to collateralise transactions on the Ethereum network.
Meanwhile Microstrategy said it might sell another US$1 billion in stock to buy more Bitcoin, CoinTelegraph reported.