Once again, Elon Musk tweeted and pushed the price of Bitcoin above an important resistance area for the time being. At the time of writing, BTC was trading at $ 39,022, up 15.5% on the daily chart.
BTC with bullish momentum on the daily chart. Source: BTCUSD Tradingview
The cryptocurrency had a bloody weekend and destroyed the entire market. Corrections of 40% to 60% were made for top projects in the ranking by market capitalization. Now they seemed to be getting back on their feet with the price of BTC.
Most experts agreed that the crash was imminent, but the influence of the Tesla CEO was undoubtedly a catalyst that put the market on a downward trend. Musk made two key statements at a critical time when BTC’s price struggled to hold support at $ 47,000 and $ 43,000.
He first said that bitcoin mining is having a negative impact on the environment. He later threatened to dump Tesla’s $ 1.5 billion in BTC. The crypto community took action against the entrepreneur. Now, as the price was battling, Musk revealed the following:
Talked to North American Bitcoin miners. They pledged to publish the current and planned use of renewable energies and to ask the miners WW to do so. Potentially promising.
Michael Saylor, CEO of software company MicroStrategy, claimed 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, added Saylor:
Yesterday I was excited 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 transparency of energy use and accelerate sustainability initiatives around the world.
The organization will receive support from mining pools Argo, Blockcap, Hut8, Marathon Digital Holdings and Riot. Core Scientific, an infrastructure and software solution based on blockchain technology; Investment firm Galaxy Digital and HIVE Blockchain Technologies.
According to the CEO of MicroStrategy, the Bitcoin Mining Council will: “Standardize energy reporting, pursue the ESG goals of the industry and educate + expand the market”.
Bitcoin community split on mining initiative
The response from the crypto community has been mixed. While some celebrated the initiative, others completely disapproved of it, claiming that “private” meetings were not what Bitcoin wanted. At the initiative of Marty Bent, the host of the Tales From The Crypt podcast, said:
They don’t care about clean energy. You take care of the control. #Bitcoin has one of, if not the highest blend of renewable energy in any major industry.
Before the Elon Musk announcement, market sentiment was largely bearish. After that, short position liquidations of over USD 8 million were recorded on all exchange platforms, as reported by analyst William Clemente.
Boom, almost USD 10 million in short liquidations in 10 minutes pic.twitter.com/e0dbA71BiI
– William Clemente III (@WClementeIII) May 24, 2021
The market has now reset and is waiting for confirmation of a more persistent bearish or bullish trend. The price movement seems to tend to favor the optimists, at least in the lower periods. Clemente said, “Bears in disbelief”.