- Elon Musk announced that Tesla would start accepting BTC payments as soon as there is proof that 50% of energy used for mining is renewable.
- MicroStrategy makes plans to sell $1 Billion in stock to acquire more bitcoin.
- Bitcoin sentiment is recovering once again following bullish news from various influential investors and enterprises.
- The Bitcoin Mining Council has sidelined Elon Musk.
Cryptocurrencies are notorious for their volatility with experts going as far as to compare crypto to penny stocks, given that its value is directly impacted with each piece of news. Social media has added a new dynamic to the cryptocurrency market as influential personalities have consistently interfered with organic price movements.
Interestingly enough, social media works to both the benefit and detriment of Bitcoin’s momentum. Tech celebrities such as Elon Musk and John McAfee have already become staples in the bull run meta. The crypto market has once more been swayed by the “Musk effect” as a positive tweet helped bitcoin to break through the $36,000 barrier.
Elon Is Back to His Old Antics
The price of bitcoin has broken through the psychological barrier of $40,000 following a series of positive statements, among which serial investor Tudor Jones claimed that he “held 2% of his assets in bitcoin,” and would be “going all-in on inflation trades,” which of course helped in boosting market sentiments.
Elon Musk, who had previously denounced Bitcoin for its high environmental footprint, announced that Tesla may recommence accepting BTC payments on a conditional basis. May 2021, which was certainly not a beloved month for cryptocurrencies, saw the Chinese government reiterate its stance on crypto transactions and enforce strict guidelines around PoW mining in China, the now infamous month also witnessed a Tesla announcement stating that the giant would no longer be accepting BTC as a form of payment after Elon Musk cited ‘environmental issue’ rhetoric.
Sygna’s CEO, Magda Wierzycka, accused Elon Musk of purposefully using his social influence to manipulate the market to his own advantage. Each tweet made by the controversial business magnate has indeed resulted in market fluctuations in one direction or the other. Depending on the tone and scope of a given tweet made by Musk, Bitcoin could drop by $2,500 or gain $5,000 in value. His antics have also helped Dogecoin, a meme coin, to break into the top 10 coins by market capitalization.
On the Flipside
- The price of Bitcoin has remained stagnant at around the $40,000 mark.
- Tesla’s green energy consumption still contributes to pollution and carbon emissions.
- An Enigma Research report highlights that Bitcoin might continue to trade sideways despite the surge in price.
- The Bitcoin Mining Council holds the label of “forum” despite being backed by corporate entities.
The Green Bitcoin Initiative
Elon Musk’s mining concerns would seem to be well-founded, as they prompted constructive debate around Bitcoin’s mining efficiency. The establishment of the Bitcoin Mining Council aims to facilitate discussion around Bitcoin’s energy consumption, with the website stating that it is a forum where miners can commit to the “network and its core principles.”
The website is intended to increase transparency in mining data to mitigate concerns about the risks associated with Bitcoin mining by adding an accurate energy consumption number. The website lists MicroStrategy’s Michael Saylor as a founding partner, while Elon Musk, who was previously at the forefront of the discussion with North American miners, was left out. What’s important to note is that the council allows miners to participate in open debate, offering the platform more accurate representation.
MicroStrategy Adds Fuel to the Fire
It is no surprise that MicroStrategy has announced the purchase of an additional $488 million worth of bitcoin. The business entity was among the first to jump on the Bitcoin bandwagon acquiring $250 million worth of bitcoin, or 21,545 BTC, back in 2020. The investment has been well rewarded as MicroStrategy saw its value rise to $4.45 Billion in March 2021 on the back of several shopping sprees.
MicroStrategy has since filed an S-3 with the Securities and Exchange Commission (SEC) to launch a new securities offering, aiming to sell $1 billion worth of stock over a period of several years for $0.001 per share. The overall aim of the bold move is to use the revenue to purchase even more bitcoins. It is not yet known when the company intends to proceed with the purchase or what the trigger price would be.
Positive sentiment towards Bitcoin went cold in May as the famously volatile nature of the crypto market once again reared its head. According to the Fear and Greed Index, sentiment towards Bitcoin is hovering at around the 30 mark, up from a low of 10 in early June. While opinions on cryptocurrency are still divided, investment banks such as J.P. Morgan and Goldman Sachs are seeking a safe approach to crypto investments for their corporate clients