Bitcoin surged above $39,000 on Sunday for the first time since mid-June after recent bullish comments from Twitter CEO Jack Dorsey and Tesla CEO Elon Musk. Experts attributed the moves to the lowering concerns over the environmental impact of Bitcoin mining and China’s regulatory crackdown.
Despite a recent fall below $30,000, Bitcoin surged up nearly 10% for the 24-hours, hit the $39,544.29 peak, the highest level since June 16, according to CoinDesk data.
Bitcoin rally affected other cryptocurrencies, as of 4:45 a.m. ET on Monday, Ethereum and Dogecoin had soared 7.3% and 11%, respectively, over the past 24 hours, while the entire crypto market added over $114 billion in value in 24 hours, by Coinmarketcap.com data.
The rally comes after Bitcoin recently fell below $30,000 after a global sell-off in stocks, sparking fears that it could plunge even further.
As said Vijay Ayyar, head of business development at cryptocurrency exchange Luno, “I think we saw an accumulation period around 29-30K, indicating bullishness and a potential move towards $40K for Bitcoin.”
The surge came as major tech giants have seemingly signaled their support for digital currencies through last week.
As well as bullish comments from Tesla and Twitter CEOs Elon Musk and Jack Dorsey, who have each shared their thoughts on how they are incorporating crypto in their businesses.
Musk, who is known for moving markets with his tweets, also said during recently spoke with Jack Dorsey and ARK Invest CEO Cathie Wood at a Bitcoin conference called “The B-Word” that Tesla would likely start accepting Bitcoin for vehicle purchases again as a greater share of Bitcoin mining switches to renewable energy.
“The Chinese trading day has opened up, and the Elon/Jack/Cathie talk was super bullish,” noted Alex Brammer of Luxor Mining, explaining the last crypto surge.
Meantime, some of the issues that have impacted Bitcoin’s price have begun to alleviate. Over the past few months, China’s crackdown on cryptocurrencies targeting mining and trading provoked a massive transferring miner’ businesses to the U.S. and other countries, while concerns over the carbon footprint of Bitcoin mining are starting to wane.
By the words of Brammer, the uncertainty around the environmental impact of mining and the Chinese regulatory concerns have “worn off.”