Bitcoin up after Musk announced Tesla could use it again
Bitcoin reached a two-week high just below $40,000 on Monday following Elon Musk’s announcement via Twitter that tesla may resume transactions using the world’s largest cryptocurrency.
Bitcoin advanced more than 9% after Musk’s tweet, breaking above its 20-day moving average, and it jumped slightly further in Asia to hit $39,838.92.
Bitcoin has gyrated to Musk’s views for months since Tesla announced a $1.5 billion bitcoin purchase in February and said it would take the cryptocurrency in payment.
Later on, Musk said the electric car maker would not accept bitcoin due to concerns over how mining the currency requires high energy use and contributes to climate change.
Bitcoin is up about 33% this year but has collapsed from a record peak above $60,000 amid a regulatory crackdown in China and Musk’s apparently wavering enthusiasm for it. Telsa stock is down about 30% since the company’s bitcoin purchase.
In other crypto coins, ether was steady at $2,491, and one-time Musk darling dogecoin buying about 32 U.S. cents on crypto exchange Binance.