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Bitcoin’s price has seen a promising 12% surge following Tesla CEO Elon Musk’s encouraging statement on Sunday. Musk hinted that his electric vehicle company could consider Bitcoin again in the future, provided miners transition to clean energy sources.
According to Coindesk data, Bitcoin has made a significant leap, surging by a remarkable 12% to reach $ 39,200.40 as of 1:00 p.m. ET Monday. This surge marks a substantial 30% increase since the start of 2021. However, it’s worth noting that the current price is still below the all-time high of $64,829.14 in April.
These improvements were sparked by Musk’s optimistic tweet on Sunday. In it, he hinted that Tesla could resume Bitcoin transactions once there’s confirmation of a significant (-50%) increase in clean energy usage by miners, aligning with a positive trend.
Car purchases through Bitcoin were stopped by Tesla in mid-May due to worries over the environmental impact of cryptocurrency mining. Some enormous amounts of energy levels require fueling powerful computers in crypto mining.
According to Cambridge’s Bitcoin Electricity Consumption Index, crypto mining consumes more energy than entire nations like Belgium and Finland.
The new announcement by Tesla’s owner initiates yet another phase of large market moves.
Musk May’s comments about suspending Bitcoin transactions caused the prices of most cryptocurrencies, mainly Bitcoin, to decrease by 40%.
Bitcoin’s future under the environmental spotlight
The climatic impact of cryptocurrency mining has come under significant scrutiny. In late May, the Inner Magnolia region of China, a prominent bitcoin mining region, proposed penalties for companies and persons involved in mining digital currency. This crackdown came after Chinese Vice Premier Liu He cited a “crackdown on Bitcoin mining” to prevent “risk to the social field.”
Iranian authorities have also announced a four-month ban on energy-consuming crypto mining. The ban will be effective until Sept. 22. It was introduced after officials reported blackouts in Tehran and many other big cities due to the energy-intensive activity of Bitcoin and other cryptocurrency mining.