Key Takeaways
- Bitcoin saw a 10% rebound Sunday through Monday, bringing the asset back to the crucial $40,000 psychological resistance.
- Elon Musk tweeted that Tesla plans to accept Bitcoin again once mining becomes greener Sunday, which partly fueled the rise.
- Sentiment was also high after Bitcoin approved its Taproot update this weekend. Taproot will add privacy, efficiency, and smart contract functionality.
Bitcoin jumped over 10% to almost $40,000 after an Elon Musk tweet and confirmation of the blockchain’s Taproot update brought positive sentiment to the market.
Bitcoin Ascends
Bitcoin is flirting with $40,000 again after the leading cryptocurrency received two pieces of positive news over the weekend.
The asset was hovering around $36,000 Sunday afternoon and trended up throughout the day. It’s trading above $39,000 Monday after rising more than 10%.
This is inaccurate. Tesla only sold ~10% of holdings to confirm BTC could be liquidated easily without moving market.
When there’s confirmation of reasonable (~50%) clean energy usage by miners with positive future trend, Tesla will resume allowing Bitcoin transactions.
— Elon Musk (@elonmusk) June 13, 2021
While the tweet was a major catalyst for the price hike, other good news of a more technical nature also contributed to the run-up. The first Bitcoin update in four years, dubbed Taproot, was approved by a majority of miners around the world Saturday. The update will bring more privacy and efficiency to the Bitcoin network while opening the door for smart contracts to be built on Bitcoin. It’s scheduled to ship in November.
Bitcoin’s rebound coincides with a significant bounce on the Bitcoin dominance chart which had been trending down since March.
Disclaimer: The author held ETH and several other cryptocurrencies at the time of writing.
