Bitcoin keeps consolidating around $40,000, its highest price since late May. The optimism of market participants about the BTC prospects has soared after another Elon Musk's tweet, which justified the hopes of those investors who had expected him to come to the rescue and save Bitcoin again.
Not long ago, Elon Musk and Tesla (NASDAQ:TSLA) were accused of manipulating the BTC rate, namely, artificially "pumping" the prices to then dump BTC at a higher cost. In his defense, Musk noted that Tesla only sold 10% of its Bitcoins to make sure that BTC can be easily converted into liquid assets.
He also stated that Tesla would start accepting bitcoin as payment for its vehicles if about 50% of the power used to mine the cryptocurrency comes from "clean" energy sources. Experts suggested that Musk went for it to support the use of renewable energy sources, which would bring long-term benefits to his company.
An interesting study conducted at the University of Cambridge in May showed that the bitcoin network currently consumes about 97 terawatts per hour, which exceeds the energy consumption of countries like Chile and New Zealand.
How soon can crypto mining reach this figure? In 2018, about 28% of the energy used by miners came from renewable energy sources, which means that it may take at least two years to reach 50%. It is worth noting that if energy consumption for Bitcoin mining grows faster than the share of renewable energy sources, then hitting the 50% mark may become a challenge.
In addition to Musk's tweet, the BTC rate was also supported by the MicroStrategy decision to sell $500 million worth of senior secured notes due in 2028. This US company is known for its Bitcoin investments. The company intends to use the proceeds from the sale of the notes to buy additional Bitcoin. The company currently owns 92,079 BTC worth about $3.8 billion. If the BTC price does not change anytime soon, MicroStrategy will be able to acquire an additional 12,000 BTC.
Bitcoin bulls are also backed by the generally positive market sentiment, which indicates that investors have no doubts that the BTC/USD return above $50,000 is imminent. Voyager Digital conducted a survey of traders on its platform, a popular choice among retail investors in the United States and Europe.
The survey captured responses from 3,671 participants and showed that 81% of respondents believe in a recovery in the BTC rate, despite the collapse of prices in April and May. Considering the above, we recommend using the current price levels for a profitable entry to buy some BTC. Growth may resume right from the current levels.