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Bitcoin Jumps $2K after Musk Says He Talked to BTC Miners

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3rd Party Analysis 25 May 2021

Key Takeaways

  • Elon Musk fuels another upside swing in Bitcoin, saying he had discussed Bitcoin’s sustainability
  • The price of Bitcoin jumped over 6% following the tweet by the Tesla CEO

Bitcoin Jumps $2,000

Elon Musk is pushing to boost Bitcoin’s green credentials as a way to improve the mining process involved in transacting with the cryptocurrency. A late-Monday tweet by the Tesla CEO spurred another rally in the world’s biggest digital asset.

The price of Bitcoin jumped over 6% following Elon Musk’s announcement on Twitter that he had talked with North American Bitcoin miners. “They committed to publish current & planned renewable usage & to ask miners WW [worldwide] to do so,” the Twitter post says. “Potentially promising,” Mr. Musk concludes.

Within minutes, the price of Bitcoin shot up over $2,000, or more than 6%, to reach slightly below $40,000. Bitcoin pushed as high as $39,900 during the session on Monday. The digital token closed the trading day up 15.9%, or $5,300, to $38,980 per coin.

The Bitcoin Twitter Wars

MicroStrategy CEO Michael Saylor followed up with his own Twitter update on the topic. In reply to Elon Musk, Mr. Saylor said he hosted a meeting between the Tesla CEO and leading Bitcoin miners in North America. “The miners have agreed to form the Bitcoin Mining Council to promote energy usage transparency & accelerate sustainability initiatives worldwide,” MicroStrategy’s CEO said.

On Tuesday, Bitcoin’s price is pointing to the downside. Current market price hovers around $38,000, while the opening price today was $38,980, or a 2.3% decline on the day. Ether staged a stronger comeback on Monday as the token shot up nearly 29% to reach a session high of $2,670. Ether on Monday closed 27% higher, or $554, at $2,620. Today, the Ethereum coin is trading relatively unchanged, currently at $2,590.

The whole cryptocurrency market this week has been erasing parts of the significant losses accumulated last week. The total market capitalization of the crypto space now stands at $1.7tn, up about $500bn from Sunday’s low point of $1.2tn.

From its lowest price on Sunday, Bitcoin is now higher by roughly 25%, while ether has gained over 52%. Dogecoin, the meme-token promoted by Elon Musk, has recovered over 40% for the same period.

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