Bitcoin (BTC) Soars After Musk Says Tesla May Accept Crypto Again
Elon Musk, founder and chief engineer of SpaceX, speaks at the 2020 Satellite Conference and Exhibition on March 9, 2020 in Washington, DC.
Win McNamee | Getty Images
At 11:09 p.m. ET Sunday, Bitcoin jumped 10.2% to $ 38,903.23, according to data from Coindesk. Since the start of the year, bitcoin has jumped more than 30%, although its current price is far from the all-time high of $ 64,829.14 reached in April.
These gains came after Musk said on Sunday that Tesla would resume authorization for bitcoin transactions “when there is confirmation of reasonable (~ 50%) use of clean energy by miners with a positive future trend.”
Teslas halted car purchases with Bitcoin in mid-May, citing concerns about the climate impact of cryptocurrency mining.
Crypto mining requires massive amounts of energy to power powerful computers – bitcoin mining uses more energy than entire countries like Finland and Belgium, according to the Cambridge Bitcoin Electricity Consumption Index.
The latest development marks another example of significant market moves following comments from Tesla’s CEO and billionaire.
Hundreds of billions of dollars have been wiped out of the cryptocurrency market after Musk tweeted in May about Tesla suspending purchases of cars using bitcoin. Musk’s past tweets have also been linked to stock market moves – ranging from so called meme actions such as GameStop, at investor of the viral song “Baby Shark”.
The environmental impact of bitcoin mining has come under scrutiny.
As part of its crackdown on bitcoin, China’s Inner Mongolia region – a major bitcoin mining hub – at the end of May of the proposed punishments for businesses and individuals involved in digital currency mining. It came after Chinese Vice Premier Liu He said it was necessary to “crack down on Bitcoin mining and commercial behavior “to prevent the” transmission of individual risks to the social realm “.
Elsewhere, the Iranian government announced in May a ban on mining bitcoin and other cryptocurrencies until September 22, after officials said power outages in the country’s capital Tehran and several other major cities were in part due to the energy-intensive activity.
– CNBC’s Arjun Kharpal and Natasha Turak contributed to this report.