Once again, Elon Musk has tweeted and pushed Bitcoin’s price beyond an important resistance area, for now. At the time of writing, BTC trades at $39,022 with a 15.5% profit in the daily chart.
The cryptocurrency had a bloody weekend, and it took down the entire market with it. Top projects on the ranking by market cap saw 40% to 60% corrections. Now, they seemed to be bouncing back with BTC’s price.
Most experts agreed that the crash was imminent, but Tesla’s CEO influence was no doubt a catalyzer that sent the market on a downtrend. Musk made two crucial statements at a critical moment when BTC’s price was fighting to keep support at $47,000 and $43,000.
He first said that Bitcoin mining has a negative impact on the environment. Later, he threatened with dumping Tesla’s $1.5 billion in BTC. The crypto community went against the entrepreneur. Now, as the price struggled, Musk revealed the following:
Spoke with North American Bitcoin miners. They committed to publish current & planned renewable usage & to ask miners WW to do so. Potentially promising.
Michael Saylor, CEO of software company MicroStrategy, claimed that he was the bridge between the BTC mining sector and Musk. According to the executive, the miners have decided to form the Bitcoin Mining Council, Saylor added:
Yesterday I was pleased to host a meeting between Elon Musk and the leading Bitcoin miners in North America. The miners have agreed to form the Bitcoin Mining Council to promote energy usage transparency & accelerate sustainability initiatives worldwide.
The organization will have support from mining pools Argo, Blockcap, Hut8, Marathon Digital Holdings, Riot; Core Scientific, an infrastructure and software solution based on blockchain technology; investment firm Galaxy Digital, and HIVE Blockchain technologies.
The Bitcoin Mining Council will: “standardize energy reporting, pursue industry ESG goals, & educate+grow the marketplace”, according to MicroStrategy CEO.
Bitcoin Community Divided On Mining Initiative
The reaction from the crypto community was mixed. While some celebrated the initiative, others completely rejected it and claimed that “private” meetings are not in the spirit of Bitcoin. Marty Bent, the host of the podcast Tales From The Crypt, said the following on the initiative:
They don’t care about clean energy; they care about control. #Bitcoin has one of, if not the highest mix of renewable energy use in any major industry.
Before Elon Musk’s announcement, the market sentiment was still mostly bearish. After, over $8 million in short positions liquidations were recorded across all exchange platforms, as reported by analyst William Clemente.
Boom, just shy of $8M in short liquidations in 10 mins pic.twitter.com/e0dbA71BiI
— William Clemente III (@WClementeIII) May 24, 2021
The market has now reset and awaits confirmation of a more persistent bearish or bullish trend. The price action, at least in the lower time frames, seems to be more inclined to favor the optimists. Clemente said: “Bears in disbelief”.
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Author: Reynaldo Marquez