Bitcoin Rises After Elon Musk 'B Word' Conference

GB Market Commentary 22/07/2021 by Freddie Williams

Positive news regarding cryptos as Elon Musk and Jack Dorsey discussed ‘The B Word’ in a virtual Bitcoin conference yesterday. The Tesla and SpaceX CEO stated that Tesla will begin to accept Bitcoin once again and reiterated his renewable energy goals for the industry. He said that he wanted to do more due diligence to confirm that the percentage of renewable energy usage is most likely at or above 50%. Tesla began to accept Bitcoin in March before suspending payments months later due to energy concerns. Musk has not given a date by which he expects Bitcoin payments to be restored. Musk’s statements implied that payments could be restored fairly soon. He noted that the Bitcoin mining industry is “shifting a lot more toward renewables”. During the conference, Musk revealed his personal cryptocurrency holdings and his corporate holdings. “I own Bitcoin, Tesla owns Bitcoin, SpaceX owns Bitcoin, I personally own a bit of Ethereum and I hold Dogecoin of course,” he said. Musk did not disclose any investment amounts. However, it is known that Tesla holds about $1.4 billion of Bitcoin. Musk also added that as well as Tesla owning Bitcoin, SpaceX have now also added the currency onto it’s balance sheet.

Following this conference, this has seen a positive impact on the market. BTC increased significantly after falling to a low of $29,278, it began a rapid upward move that led to a high of $32,858. This created a bullish engulfing candlestick. In addition, it reclaimed the $31,300 horizontal support area that previously had been in place since May 19. This is a bullish development since the area is now expected to act as support again. However, technical indicators have not turned bullish yet. Altcoins have also seen green following Bitcoins growth with Stellar (XLM) up 16.8%, Polygon (MATIC) up 14.7%, Terra (LUNA) 12.4% in the past 24 hours.

The Cambridge Bitcoin Electricity Consumption Index is showing a big shift in the cryptocurrency mining industry towards cleaner sources of energy. New data published by Cambridge University suggests that the mining industry has changed significantly over the past six months. The control over mining by the Chinese segment has fallen by over 20% since October 2020. Experts see some positive developments that are emerging from the change in mining’s geography. The crackdowns are forcing miners to move to other countries and seek more friendly energy sources. The move to renewable energy for bitcoin mining is now a legitimately big market, with companies like Jack Dorsey’s ‘Square’ also investing in the change.

Goldman Sachs reports that 60% of uber-rich family offices are considering crypto or they already own it. Around 15% of Goldman Sachs’ family office clients have already purchased digital assets. Following a survey GS conducted, it is expected that close to half of its family office clients want to add cryptocurrency to their portfolios. This is a clear signal that the ultra-wealthy are becoming increasingly bullish on digital assets. Approximately 67% of the firms surveyed manage more than $1 billion worth of assets, with 22% of respondents boasting assets under management exceeding $5 billion.