Optimism Rises As Bitcoin Breaks Above $40,000
Bitcoin surpassed $40,000 on Monday after a volatile trading weekend, reaching its highest level in more than two weeks.
Bitcoin, which jumped nearly 10 percent on Sunday, breaking above its 20-day moving average, is up over 12 percent in the last 24 hours as of report time at $40,692. It had already briefly broken above $41,000 this afternoon.
With Bitcoin crossing the $40,000 psychological threshold, many chartists are looking at $42,500 as its next important level to breach. That number roughly represents its 200-day moving average and topping it could mean the coin rallies toward $50,000.
The cryptocurrency market has gyrated to Elon Musk’s views for months since Tesla announced a $1.5 billion bitcoin purchase in February and said it would take the cryptocurrency in payment. He later said the electric car maker would not accept bitcoin due to concerns over how mining the currency requires high energy use and contributes to climate change.
“When there’s confirmation of reasonable (~50%) clean energy usage by miners with positive future trend, Tesla will resume allowing Bitcoin transactions,” Musk said on Twitter on Sunday.
The bullish run was also supported Monday after billionaire hedge fund manager Paul Tudor Jones told CNBC on Monday that bitcoin is a great way to protect his wealth over the long run and is part of his portfolio just like gold.
Other cryptocurrencies such as Ether, Dogecoin, Binance Coin, and Bitcoin Cash also sprung into gains on Monday.