Bitcoin consolidated around $40,000, its highest price since late May. The market participants got thrilled about the BTC future after Elon Musk tweeted that Tesla only sold 10% of its Bitcoins to make sure that BTC can be easily converted into liquid assets. He also noted that Tesla would start accepting bitcoin as payment for its vehicles if 50% of the power used to mine Bitcoin comes from "clean" energy sources. These comments lifted the optimism of those who had long expected Musk to come and rescue Bitcoin again.
Musk's statement came after he was accused of manipulating bitcoin prices - artificially "pumping" the prices in order to dump BTC at a higher cost later. Experts believe that Musk decided to support the use of renewable energy sources because it will bring long-term benefits to his company. According to the University of Cambridge research conducted in May, the BTC network currently consumes about 97 terawatts per hour. These consumption figures top the total energy consumption of countries like Chile and New Zealand.
If Musk wants 50% of energy to come from green sources, the question arises - How soon can crypto mining reach this figure? In 2018, about 28% of the energy used by miners came from renewable energy sources. For the figure to reach 50%, it may take at least two more years. Also, if the energy consumption for Bitcoin mining accelerates faster than the share of renewable energy sources, then reaching the 50% mark may become even more complicated.
Apart from Musk's" intervention," the BTC prices were also backed by the MicroStrategy decision to sell $500 million worth of senior secured notes due in 2028. MicroStrategy, which currently owns 92,079 BTC worth about $3.8 billion, intends to use the proceeds from the sale of the notes to buy additional Bitcoin. If the BTC value remains steady, MicroStrategy will acquire an additional 12,000 BTC.
Bitcoin bulls are getting additional support from the generally positive sentiment, which indicates that crypto investors are certain that the BTC/USD will eventually return above the $50,000 mark. It's just a matter of time. The cryptocurrency-asset broker Voyager Digital, popular among retail investors in the United States and Europe, conducted a survey, which captured responses from 3,671 participants. The survey revealed that 81% of respondents believe in a recovery in the BTC rate, despite its recent crash in April and May. That being said, we recommend considering the current levels for opening some long-term positions on BTC. Growth may resume anytime soon.
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