Crypto Update

Bitcoin reached its highest level in more than two weeks. The reason behind this rally is due to Tesla CEO Elon Musk tweeting that the company would resume accepting bitcoin as a payment once miners who verify transactions use more renewable energy.

In other positive news for the cryptocurrency, El Salvador became the first country in the world to adopt bitcoin as legal tender after Congress on Wednesday approved President Nayib Bukele’s proposal to embrace the cryptocurrency.

The president of El Salvador announced Wednesday that the country's state-run geothermal energy utility would begin using power derived from volcanoes for Bitcoin mining.

Another reason for the recent spike in BTC price was MicroStrategy said in a securities filing on Monday that it raised $488 million from its bond sale, an increase from the $400 million it initially planned. These funds will be used to purchase additional bitcoin.

The market had been going through another correction over the weekend until Elon’s Tweet of accepting the cryptocurrency again has changed the sentiment.

Cryptocurrencies have been under pressure in recent weeks, with Bitcoin losing about 30% since April, when it hit a record high of almost $65,000. 

The recent selloff was fueled by Tesla Inc.’s Elon Musk, who criticised the amount of energy used by the miners. Elon came back on his decision to allow customers to buy his cars using the cryptocurrency. This as well as increased Chinese regulatory oversight had also soured the mood, and temporarily reduced the buying appetite for retail and institutional investors.