The prices of the world’s leading cryptocurrencies traded significantly higher on Sunday as digital asset cop Elon Musk said Tesla would re-allow transactions in the vehiclemaker’s stores if key members of the Bitcoin infrastructure can confirm that 50% of the energy is in use is consumed to mine for Bitcoin is obtained from clean energy sources.
The Tesla CEO’s tweet on Sunday afternoon was part of an exchange in which Musk, in response to a Twitter letter referencing a CoinTelegraph article, accused the techno file of “Bitcoin pump and dump,” said the company part of its $ 1.5 billion initial investment in crypto, but about 10% sold “for confirmation” [bitcoin] could easily be liquidated without moving the market.
Musk has become a prominent and influential crypto voice, whose tweet in May said Tesla would no longer accept Bitcoin as payment for its vehicles, citing digital mining’s large carbon footprint for Bitcoin BTCUSD, +1.33 %,
was accused of triggering a sell-off on crypto. Musk’s comments on the sustainability of Bitcoin mining activities continue to resonate with the crypto community.
An often-cited index from the University of Cambridge puts the annual electricity consumption of Bitcoin mining at around 99 terawatt hours, more than the electricity consumption of the Philippines or Pakistan.
A number of Musk’s recent tweets have also sparked a mix of exuberance, confusion, concern, and sometimes fear in the crypto community. Earlier this month, investors attempted to analyze an enigmatic tweet from SpaceX that contained a bitcoin symbol and a broken-hearted emojii.
His social media messaging has had a huge impact on the prices of Dogecoin DOGEUSD, -0.71%, and Bitcoin, and he’s been blamed, at least in part, for Bitcoin’s recent slump and the broader crypto complex. An article in the Wall Street Journal last month described it as the biggest influencer of Bitcoin.
On the last Sunday afternoon review, Bitcoin prices rose nearly 8% and changed hands on CoinDesk at $ 38,808.09. Bitcoin is up over 28% year-to-date but is about 40% below its mid-April high at $ 64,829.14. The world’s number 2 cryptocurrency, Ether ETHUSD, + 0.01% on the Ethereum blockchain, rose nearly 5% and changed hands at $ 2,521.81.
Back in February, Tesla announced that it had acquired approximately $ 1.5 billion worth of Bitcoin in a filing with the Securities and Exchange Commission.
Barron’s sister publication, MarketWatch, estimates that Tesla paid about $ 38,000 per bitcoin, based on the average price of the asset between Tesla’s fourth-quarter conference call on Jan. 27, which did not mention Bitcoin holdings, and the filing date.
In general, the prices of digital assets like Bitcoin outperform traditional markets.
On Friday, the S&P 500 Index SPX closed at a record high of + 0.19% and is up about 13% through 2021, while the Dow Jones Industrial Average DJIA, + 0.04%, is up more than 12.5% while the Nasdaq Composite The COMP index, + 0.35%, has risen by over 9% over the year to date.