Bitcoin’s price neared its all-time high of $61,712 early Saturday while ether (ETH, -0.26%) set a new all-time high at $2,190.
According to CoinDesk’s Bitcoin price page, the leading cryptocurrency traded above $60,000 for the first time in nearly a month after spending weeks vacillating between $52,000 and the upper $50,000s. Bitcoin pulled back marginally after peaking around $60,900, though it remains above the psychological marker as of press time.
Bitcoin last hit an all-time high in mid-March, according to CoinGecko.
Meanwhile ether, the second-largest cryptocurrency by market cap, came close to $2,200, just days after breaching $2,100 for the first time.
While it’s unclear if there’s a causation, the price action comes just days before leading U.S. exchange Coinbase begins trading on Nasdaq in one of the crypto industry’s most anticipated events. A sign of the maturing market, the listing will likely give Wall Street traders their most accessible bet yet on growth in the space.
Some institutional investors have wasted little time. Friday, Daniel Loeb, CEO of $17 billion hedge fund Third Point revealed he was a hodler in response to a CoinDesk report. He’s hardly alone: institutional funds have flooded the markets and have been deemed at least partly responsible for the 2020-2021 rally.
Bitcoin bulls were further bolstered on Friday by the idea that an exchange-traded fund (ETF) with exposure to the digital asset space might be approved in 2021, after the Securities and Exchange Commission (SEC) confirmed it was reviewing ETF giant WisdomTree’s application.
The regulator previously began reviewing VanEck’s ETF application last month, and another six companies have filed initial registration forms declaring their own efforts to launch a regulated bitcoin (BTC, -0.99%) investment vehicle.
The broader digital asset space has seen tremendous froth over the past few months, with investors and industry participants trading heavily in decentralized finance tools, non-fungible tokens and altcoins like doge, which hit a peak of $0.08 in February, eight times its value a month earlier.
Tesla Suspension Won’t Derail Bitcoin, It’s Still a Buy- Says Bloomberg’s McGlone
Elon Musk’s concern that bitcoin might be bad for the environment isn’t enough to derail the cryptocurrency’s potential for further price gains, said Bloomberg Intelligence commodity strategist Mike McGlone.
McGlone in a new report on Thursday wrote “Elon Musk saying Tesla is suspending purchases using bitcoin doesn’t shake our thesis that the crypto is in early price discovery days on its way to becoming the global digital reserve asset in a world of accelerating digitalization and electrification.”
The report follows a 13 percent drop in the price of bitcoin, the most in a single day in almost four months. The drop was prompted by Musk, Tesla’s CEO, saying late Wednesday the electric-car company was ending its bitcoin-for-cars offer made earlier in the year. That Feb. 8 announcement drove up bitcoin’s price so dramatically – by 19 percent – that it was lionized by some fans of the cryptocurrency as “Elon’s candle,” in a reference to the resulting pattern on price charts.
Now, bitcoin analysts are scrambling to adjust their price forecasts and respond to concerns about bitcoin’s energy needs contribute to fossil-fuel burning, making it a climate threat at a time when environmental, social and governance concerns are becoming more important to institutional investors.
McGlone is considered a hot hand in cryptocurrency markets because he accurately forecasts bitcoin’s price rise to $50,000 last year, at a time when it was trading at just a fraction of that level.
What matters the most, according to McGlone, is the source of the Bitcoin network’s energy.
“The source of electricity is increasing from solar and wind, which are cost effective,” according to the report. “On a global scale, electricity is going renewable.”
Musk’s remarks about the crypto’s electricity consumption are “odd” coming from an automaker whose product is “fed solely by electricity,” the analyst wrote.
McGlone wrote that bitcoin “shows comfort at the whole-number level around $50,000, which was our initial call on a 2021 target resistance value.”
“The rule of money flowing to where it’s treated best looks like an enduring tailwind for bitcoin,” he wrote.
Bitcoin, Other Cryptocurrencies Decline as Elon Musk Pulls the Plug
Elon Musk’s owned Tesla made a sudden U-turn on Wednesday to stop accepting Bitcoin for payment of its vehicles, citing rising use of fossil fuels in Bitcoin mining and transactions.
A situation that could have a negative effect on the environment, stated the Chief Executive Officer, Tesla Inc., Elon Musk.
Elon Musk had earlier asked if his over 54 million followers, which comprises of a huge number of cryptocurrency lovers, want Tesla to accept Dogecoin, a meme coin that has risen to global prominence on Musk’s support.
Do you want Tesla to accept Doge?
— Elon Musk (@elonmusk) May 11, 2021
Over 78 percent responded positively to the poll on May 11 before Musk announced on Wednesday the decision of Tesla Inc to stop accepting Bitcoin.
Millions of Dogecoin investors and traders are now predicting that Elon Musk is likely to announce Dogecoin as a replacement for Bitcoin going by his latest tweet below.
Bitcoin plunged by over 17 percent from $54,800 to as low as $46,294 per coin before rebounding to $51.119.16 as at the time of writing.
Ethereum, XRP and Dogecoin also pared losses to 7.26 percent, 7.82 percent and 10.90 percent, respectively.
Musk, in a tweet, said Tesla has suspended vehicle purchases using Bitcoin.
Tesla & Bitcoin pic.twitter.com/YSswJmVZhP
— Elon Musk (@elonmusk) May 12, 2021
Tesla Stops Accepting Bitcoin Over Rising Use of Fossil Fuels in Bitcoin Mining, Transactions
Tesla Inc., an American electric vehicle and clean energy company, on Wednesday announced it has stopped accepting Bitcoin as payment for its vehicle.
The company’s Chief Executive Officer, Elon Musk, disclosed this in a tweet.
Musk said “Tesla has suspended vehicle purchases using Bitcoin. We are concerned about rapidly increasing use of fossil fuels for Bitcoin mining and transactions, especially coal, which has the worst emissions of any fuel.
“Cryptocurrency is a good idea on many levels and we believe it has a promising future, but this cannot come at a great cost to the environment.”
The billionaire further stated that Tesla will not be selling its holding of Bitcoin until mining transitions to more sustainable energy.
He said “Tesla will not be selling any Bitcoin and we intend to use it for transactions as soon as mining transitions to more sustainable energy. We are also looking at other cryptocurrencies that use <1% of Bitcoin’s energy/transaction.”
Bitcoin plunged by 17 percent from $54,800 per coin to as low as $46.294 per coin before moderating to $50.656 per coin while Ethereum, XRP, and Dogecoin declined by 9.09 percent, 10.73 percent and 10.28 percent, respectively.
In March 2021, Elon Musk announced that customers in the United States can now purchase Tesla vehicles with Bitcoin.
This was despite Bill Gates, Janet Yellen and others complained about Bitcoin energy consumption and its impact on the globe going forward.
While Musk seems to have downplayed their concerns in March, the Billionaire is now pushing for exactly the same thing after accumulating enough Bitcoin. A move now criticized by millions of cryptocurrency lovers globally.
Nic Carter, founding partner at Castle Island Ventures, and a leading voice among defenders of Bitcoin’s energy use, said Elon Musk should have done his due diligence before accepting Bitcoin.
“Surely he would have done his diligence prior to accepting Bitcoin?’ Carter said. “Very odd and confusing to see this quick reversal.”
Others started pushing Dogecoin as a replacement for Bitcoin while some suggested Tether on the Tron network has the lowest energy consumption presently and it is a stable coin.
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