Key Takeaways
- Bitcoin floats over the $40,000 milestone after climbing 17% in two days
- The crypto market tops a valuation of $1.75tn, bitcoin owns a 43% share
Bitcoin Steady Above $40,000
The price of bitcoin pushed above $40,000 yesterday and today the market is putting effort to maintain the positive momentum. Crypto traders are so far keeping the asset barely in the green on Tuesday. Bitcoin’s price is currently hovering around $40,400, although, buying sentiment has weakened in recent hours.
On Monday, bitcoin jumped above $41,000 but shortly after, the digital asset fell back near $40,000 as investors couldn’t sustain the upside move. Still, the price of the world’s largest digital currency is higher by almost 17% since Sunday.
Some Positivity in the Crypto Space
The improved mood in the crypto space was largely attributed to a few individuals. Elon Musk made an announcement on Sunday that Tesla would reconsider accepting Bitcoin as payment once more of the power used to create the coins comes from cleaner energy sources. The news pushed bitcoin above its range below $40,000.
In addition, Michael Saylor, another powerful bitcoin influencer and the CEO of MicroStrategy, stated his company had successfully completed a $500mn offering of junk bonds. The proceeds, amounting to $488mn, will be used to purchase over 10,000 fresh bitcoins. The latest bond sale is the third for the software intelligence company and will bring the total bitcoin holdings of MicroStrategy to over 100,000, or over $4bn based on Bitcoin’s current market price.
And Paul Tudor Jones, a billionaire hedge fund manager famous for calling the stock market crash in 1987, appeared in an interview for CNBC where he praised Bitcoin’s properties as a store of value and an investable asset. In the interview, he said he would like to allocate at least 5% of his portfolio to bitcoin. To Mr. Jones, bitcoin acts like a “portfolio diversifier”. He also noted that Bitcoin is “reliable, consistent, honest and 100% certain”. “Bitcoin has appealed to me because it’s a way for me to invest in certainty,” he commented.
Prompted by the positive pronouncements, the entire cryptocurrency market was elevated to reach a market valuation of $1.75tn, of which bitcoin owns $760bn, or a 43% share.
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