Elon Musk has been of a great influence for all those Bitcoin miners and investors, and while this has been deteriorating for crypto prices over the past few months, finally, we have some good news.
After Musk mentioned that he has been discussing with Bitcoin miners about renewable energy solutions, the price of Bitcoin, Ethereum, Dogecoin and Cardano has bounced back by between 10% and 25% overnight. Since many believe people are following Elon Musk on Twitter and trusting him with cryptocurrency advice more than anyone else, we believe that’s the reason for the crypto price rally in the past 24 hours.
Bitcoin Bounces Back
Even though at the beginning of May, Bitcoin got a much-needed break, its price has bounced back this week, finally returning above $40K.
After falling to almost 50% of its all-time peak on Sunday, due to China’s announcement of another yet crackdown on crypto mining, Bitcoin finally started trending upwards on Tuesday morning and passed its $40K mark this morning. However, Ethereum (ether), Dogecoin and Cardano (ada), bounced back by 10% and 25% overnight, too. What helped their prices spike again were positive news in the crypto space, which have helped boost the market.
Elon Musk’s comments assisted the boost, and shortly after the world learned that he has been in talks with miners about “green mining” solutions, crypto prices saw a quick rise. This was essential for Bitcoin, which has been steadily recuperating after the huge losses. Its price has finally bounced back passing the $40K resistance point, which was only passed for the first time in history this February. With Bitcoin finally back above $40,000 this morning, other major cryptocurrencies were up as well. The crypto market is heading back towards the $2 trillion market cap.
Elon Musk Influences Crypto Prices Again
Despite the fact that cryptocurrency experts urge people to stop making decisions based on what Elon Musk tweets, the crypto market immediately bounced back after the Tesla CEO announced that he has been talking with Bitcoin miners about renewable energy solutions.
Causing a stir within the market once again, after withdrawing support for crypto payments earlier in May, now Musk shared he was in discussions with miners in an effort to address climate concerns. But the reality is, he is not the first one to think about “green mining” solutions. In fact, such solutions may already exist. There are already a number of mining operations and crypto projects that use renewable energy and do away with the vast energy conditions and requirements altogether.
When sharing the news about these green solutions, Elon Musk’s exact words were that they were “potentially promising”. And with that statement alone, it has once again shaken up the crypto world, allowing for prices to grow and people to go crazy about investing, contrary to what happened earlier this month when he announced that Tesla withdrew vehicle purchases using Bitcoin. While he is probably messing with the world, the latest news greatly helped the crypto market, so we’re yet to see whether this trend will continue.