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Bitcoin at a two-week high after Musk’s announcement

The value of bitcoin rose after Elon Musk announced that Tesla could use it.

Mysuru: The value of bitcoin (BTC) rose by 9.8 percent after two weeks and touched $39,832.92 after Elon Musk, the CEO of Tesla Inc. tweeted that Tesla may start transactions using bitcoins.

The value of bitcoin has been fluctuating for a few months now mainly because of Musk’s tweets about it. In the beginning of 2021, Musk had announced that his company Tesla would start transacting Bitcoin, and the value had exponentially gone up then. Again, in May, Musk tweeted that owing to climate change concerns (the mining of bitcoin consumes a lot of energy), Tesla would not accept bitcoins anymore.

This caused the value of the cryptocurrency to plummet and it also subsequently caused the value of dogecoin to raise as Musk had endorsed that. After a gap of almost a month, Musk has again tweeted, “When there’s confirmation of reasonable (~50%) clean energy usage by miners with positive future trend, Tesla will resume allowing Bitcoin transactions.”

There have been largescale criticisms against cryptocurrency mining that it consumes a lot of electrical energy. BTC is one of the cryptocurrencies that consumes loads of energy when mined. Dogecoin, on the other hand, some reports state that consumes lesser amounts of energy as compared to BTC. These concerns had elicited a reaction from Musk, causing fluctuations across the cryptocurrency market.

With the latest tweet, experts believe that Musk controls the entire market given that his tweet caused massive changes up to double digits.

Sunday’s tweet has caused a 9.8 percent change adding $3,404 to the old value. This year the value of BTC has grown by at least 40 percent, and one of the major reasons has been Elon Musk’s tweets about it.

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Sindhu Nagaraj

Global Business Line Team
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