The flagship cryptocurrency is now back into the $40,000 trading range on the back of significant bullish from last week. Although many believe the recent rally is sprung up by Elon Musk’s tweet about Tesla accepting bitcoin again as a means of payment if the energy used in mining is up to 50% renewable, however, the bullish trend started last week when El Salvador, legalized bitcoin as a means of exchange.
Bitcoin’s sudden bullish momentum
Of course, the bullish trend started last week Monday when the El Salvadorian Congress passed a bill that makes bitcoin a legal tender in the country for use of day-to-day transactions. This move was fostered by the President of El Salvador. The President also announced the possibility of volcano-based mining for bitcoin miners who may be looking into moving their mining business into the country. This news pushed Bitcoin from the low $30,000 range to about $35,000.
MicroStrategy, run by CEO, Michael Saylor at the same timeline as El Salvador moves, announced that it intends to make another bet on Bitcoin to the tune of $500 million. The company already owns over 90,000 BTC and is looking to leverage more on the flagship cryptocurrency.
Bitcoin, after 4 years finally gets a facelift called “Taproot”. Taproot is focused on giving Bitcoin a new signature scheme known as Schnorr signatures. This upgrade to the Bitcoin code opens up new possibilities for privacy, multisignature wallets, security and scaling. After 90% of miners voted for the upgrade through “Speedy Trial”, the upgrade is expected to take full effect in November 2021.
Finally, the catalyst for the bull run yesterday is no other than the CEO of Tesla, Elon Musk, who denied claims that the company had sold its Bitcoin holdings and mentioned that if bitcoin energy usage is renewable by about 50%, the company will continue to accept bitcoin as a means of payment for Tesla cars. He stated “This is inaccurate. Tesla only sold 10% of holdings to confirm BTC could be liquidated easily without moving the market. When there’s confirmation of reasonable (50%) clean energy usage by miners with positive future trend, Tesla will resume allowing Bitcoin transactions”.
These news are believed to be what is pushing Bitcoin and the entire cryptocurrency market northward. The flagship cryptocurrency is currently trading $40,300, as of the time of writing this report, up 13% for the day.
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