Bitcoin Soared on Musk’s Support to Improve its Green Credential

Cryptocurrency trading has been gripped by significant volatility over the past two weeks. Elon Musk tweeted on Monday to indicate support for what he says is an effort by miners to improve Bitcoin’s green credential.

According to ZERO Markets’ Metatrader 4 platform, Sunday saw the largest cryptocurrency, Bitcoin, slumped to as low as $31,132. Following the tweet, Bitcoin had advanced by as much as 19% to around $39,943.

The latest tweet has been the fourth tweet by Musk that has had a material impact on the price of Bitcoin over the past two weeks. The unprecedented volatility has raised concern among the Wall Street veterans and regulators alike, which may see intervention to curb the drastic volatility down the track.

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According to the Chief market strategist for Miller Tabak + Co, Matt Maley said that the wild swings as a result of the tweets from one person jeopardize the legitimacy of the asset class. The continuation of market volatility as a result of Elon Musk’s tweets will eventually be a big setback for cryptocurrencies.

Musk and Michael Saylor tweeted that they held a call with major North American miners to including Galaxy Digital and publicly listed Hut 8 Mining Corp., on energy usage transparency and forming a Bitcoin Mining Council to standardize energy reporting. However, realistically, it will take years for many large miners to recalibrate their source of energy.

Key events this week (Economic Calendar):

  • Reserve Bank of New Zealand policy decision (Wednesday)
  • US initial jobless claims, GDP (Thursday)

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