Bitcoin Price Spikes to $42,500 After Elon Musk Reassuring Comments

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3rd Party Analysis 29 Sep 2021

Key Takeaways:

  • The price of bitcoin adds 4% to reach near $42,500 early on Wednesday
  • Elon Musk comments the US government should not get into the crypto space

Bitcoin Price Spikes to $42,500, Ether Aims for $3,000

The price of bitcoin accelerated nearly 5% on Wednesday to reach a session high of roughly $42,500 per coin. The original cryptocurrency slipped to an intraday low of $40,700 but quickly reversed course and erased the losses.

Today’s gain in the valuation of bitcoin looks on pace to snap a two-day losing streak which saw the price decline by about 4%.

The leading cryptocurrency was joined in positive territory by other major alternative cryptos. Ether, the second-largest token, is aiming to reach $3,000, up about 5% on the day. The Ethereum token reached a session high of $2,930 on Wednesday.

 

Elon Musk Delivers Positive Remarks on Cryptocurrency

Cryptocurrency enthusiasts received a boost from Tesla and SpaceX CEO Elon Musk. Attending the Code Conference in Beverly Hills, he spoke about bitcoin, regulations and the recent attempt from China to stamp out the crypto industry.

He suggested that the cryptocurrency market would do better if there was no regulation over it. On that note, Mr. Musk said the US government should just “do nothing” in terms of regulations and leave the cryptocurrency industry on its own.

The Tesla chief executive presented a positive outlook for the digital asset market. Moreover, he said that cryptocurrencies could solve “error and latency” issues that are present in the current money system. In addition, Mr. Musk addressed China’s harsh position toward bitcoin.

He added that China had decided to completely prohibit any crypto-related activity because it threatened the government’s control over the monetary system. A decentralized cryptocurrency, Elon Musk said, “is fundamentally aimed at reducing the power of a centralized government.” Moreover, he cited electricity issues and power outages as another reason for cryptos to be banned in China.

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