Bitcoin Is Aiming for $40k Yet Again, Does This Mark a ‘Trend Change’

Over the weekend, the price of Bitcoin made its way to nearly $40,000. However, this isn’t time to rejoice yet, given that it is a “crab” market and the leading cryptocurrency has yet to break out of its $30k-$40k range. As of writing, BTC/USD is trading just above $39,000. This pump in Bitcoin price came as Elon Musk tweeted that Tesla would resume transactions with the cryptocurrency when its mining is shifted to more clean energy. The electric-car maker will allow Bitcoin transactions again “when there’s confirmation of reasonable (~50%) clean energy usage by miners with positive future trend,” said Musk in response to Magda Wierzycka, executive chair of South African asset manager Sygnia saying Tesla CEO’s recent tweets on Bitcoin are “market manipulation” and should have prompted an investigation by the U.S. Securities and Exchange Commission (SEC). At the time, Musk also reiterated that Tesla sold 10% of its holdings to confirm bitcoin could be liquidated easily without moving the market. “Massively bullish Elon statement. It states the cause behind much of the drop since May is of “transitory” nature. I’ll be surprised if this is not “the” trend change,” said trader and economist Alex Kruger. https://twitter.com/krugermacro/status/1404189692229296133 It is likely that the jump in BTC price came from MicroStrategy after its chief executive officer Michael Saylor announced last week that it boosted a junk-bond offering to buy BTC to $500 million from $400 million, which is expected to close on June 14. “The tweet added to positive momentum as Elon’s stance seems to be moderating and providing a target that’s not far away,” said Jonathan Cheesman, head of over-the-counter and institutional sales at crypto derivatives exchange FTX. “The rally was already underway as the market speculated about an imminent purchase from MicroStrategy and the G-7 comments on crypto were neutral, even optimistic, about digital innovation.” Kruger is of the same opinion as he noted that with the market close to maximum bearishness combined with the upcoming MicroStrategy bid and the positive vibes coming from the G7, the market is looking good. However, the trader does not think Bitcoin price will be going back to its all-time high of almost $65,000. “But let those who sold think that, have them FOMO back in,” he added. But not everyone is of the same view, and many still expect the price to finally hit a six-digit figure by the end of this year. https://twitter.com/mikemcglone11/status/1404117977939783686 Meanwhile, last week, China placed a blanket ban on bitcoin and cryptocurrency mining on the entire Yannan province despite being 90% hydro-powered. As per the announcement, mining operations and activities in the province will now need to register and receive permission from authorities to operate, as long as they are within their stringent guidelines. Inspections for the same will be conducted by the end of June. “In other words, more ASIC’s will be migrating,” said Kevin Zhang, VP of Foundry Services. This is bullish for Bitcoin in the long term, eliminating the narrative of China controlling Bitcoin and making the mining even more decentralized. 

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