Following Elon Musk’s announcement that Tesla will resume Bitcoin purchases after 50% of miners use clean energy, Bitcoin increased by 14%.
After nearly three weeks of languishing around the mid-to-high $30,000s, the price of Bitcoin (BTC) jumped over 14 percent on Monday, easily crossing the magic $40,000 barrier.
Bitcoin’s price topped out at $41,117, a new monthly high for the month of June and following a weekend of violent price volatility.
The uptick in enthusiasm was fueled by a series of tweets from Tesla CEO Elon Musk, as well as news that the Republic of Tanzania was planning to legitimate Bitcoin.
Since the electric car maker revealed a $1.5 billion BTC purchase in February and stated it would allow automobiles to be paid for in the cryptocurrency, Musk has become something of a Pied Piper for Bitcoin. During the following weeks, the action aided in pushing the cryptocurrency’s price to above $60,000.
Musk soon altered his mind and announced that Tesla will no longer take Bitcoin, citing concerns about the cryptocurrency’s energy use. Bitcoin’s problems were exacerbated by a regulatory crackdown in China.
Now, in yet another apparent U-turn, Tesla CEO Elon Musk has stated that the Bitcoin prohibition is temporary in response to complaints about his effect on the cryptocurrency’s price.
“Tesla will resume permitting Bitcoin transactions when there is confirmation of fair (50 percent ) renewable energy usage by miners with a favorable future trend,” Musk tweeted on Sunday. He didn’t say how he planned to get this confirmation.
El Salvador’s declaration last week that Bitcoin would become legal tender in the country had no impact on the market, but it may have sparked a bigger trend.
Several South and Central American countries have expressed interest in following El Salvador’s lead, and Tanzania’s President, Samia Suluhu Hassan, warned Tanzania’s financial chiefs on Sunday that they must create preparations to introduce cryptocurrencies or risk being caught off guard.