Bitcoin (BTC) rises after Musk says Tesla may settle for the crypto once more
SpaceX Founder and Chief Engineer Elon Musk speaks at the 2020 Satellite Conference and Exhibition on March 9, 2020 in Washington, DC.
Win McNamee | Getty Images
Bitcoin’s price rose after Tesla CEO Elon Musk said Sunday that the electric vehicle maker could start accepting Bitcoin transactions again in the future.
The cryptocurrency then surged over $ 40,000 on bullish comments from legendary investor Paul Tudor Jones.
According to Coinbase, Bitcoin rose 12.5% to $ 40,178 in 24 hours. The cryptocurrency started trading at just $ 34,880 on Sunday. Bitcoin is up more than 30% since the beginning of the year, despite seeing wild swings. It hit an all-time high of $ 64,829.14 in April and a low of nearly $ 30,000 in May after a 30% intraday crash.
“I like Bitcoin as a portfolio diversifier. Everyone is asking me what I should do with my Bitcoin? The only thing I know for sure, I want 5% in gold, 5% in Bitcoin, 5% in cash, 5% in commodities, “Said Tudor Jones on Monday in the” Squawk Box “on CNBC.
“For me, it’s just kind of a baseline look at how I protect my wealth over time. It’s great diversification again. I see Bitcoin as a story of wealth,” added Jones. “I see crypto as a story of wealth. Others will argue that this is a different ecosystem. It is transactional in nature.”
Bitcoin rose another $ 700 shortly after the investor’s comments.
The weekend gains came after Musk said on Sunday that Tesla will resume Bitcoin transactions “if there is confirmation of reasonable (~ 50%) clean energy use by miners with a positive future trend.”
Tesla stopped buying Bitcoin cars in mid-May, citing concerns about the climate impact of cryptocurrency mining.
Crypto mining requires enormous amounts of energy to run powerful computers – Bitcoin mining uses more energy than entire countries like Finland and Belgium, according to the Cambridge Bitcoin Electricity Consumption Index.