Bitcoin (BTC) reaches $39,000 for the first time in nearly 6 weeks

Bitcoin reaches $39,000 for the first time in six weeks, bringing In a total value of $114 billion to the Crypto Market.

Bitcoin climbed above $39,000 on Sunday evening, the highest level since mid-June, as investors reacted positively to a recent sell-off.

According to CoinDesk data, the cryptocurrency was trading at roughly $38,059.84 at 11:05 p.m. ET, up nearly 11% from the same time the day before. Bitcoin earlier reached a 24-hour high of $39,544.29, the highest since June 16.

Other cryptocurrencies have benefited from BTC’s gain, with ether rising 5.9% to $2,299.55. As of 11:05 p.m. ET, the whole cryptocurrency market had gained nearly $114 billion in value in just 24 hours, according to data from Coinmarketcap.com.

The rebound comes after BTC recently dipped below $30,000 due to a global stock market sell-off, raising concerns that it could fall further lower.

“I believe we saw a period of accumulation around 29-30K, indicating bullishness and a potential climb toward $40K for Bitcoin,” said Vijay Ayyar, head of business development at cryptocurrency exchange Luno.

Bitcoin Adopting Renewable Energy

Twitter CEO Jack Dorsey, Tesla CEO Elon Musk, and ARK Invest CEO Cathie Wood all spoke at “The B-Word,” a well-attended bitcoin conference.

Musk stated that as more bitcoin mining shifts to renewable energy, Tesla would likely resume taking bitcoin for vehicle purchases. Tesla halted cryptocurrency vehicle purchases in May, citing concerns over the “rapidly expanding use of fossil fuels for bitcoin mining.”

The energy-intensive process of creating new BTCs, BTC mining involves solving complicated math problems. This procedure uses a significant amount of energy.

“The Chinese trading day has started, and the Elon/Jack/Cathie chatter has been really bullish,” said Alex Brammer of Luxor Mining, a bitcoin pool for experienced miners.

More Bullish Headlines in the Crypto-verse

Other bullish headlines for bitcoin have appeared. Amazon is trying to hire a digital currency. And blockchain expert for its payments division.  That implies it is looking into BTC and other cryptocurrencies more closely. Amazon is “excited by the innovation happening in the cryptocurrency area and is exploring what this may look like on Amazon,” according to an Amazon spokeswoman.

According to bitcoin mining expert Brandon Arvanaghi, these bullish actions have also contributed to a so-called “short squeeze.”

Short sellers gamble that the price of bitcoin will continue to decrease. However, if the price rises, these investors will attempt to cut their losses. And therefore quit their short positions, causing the price to rise even more.

According to Luno’s Ayyar, “I believe the amount of the jump was probably driven by over-leverage shorts.”

Meanwhile, some of the problems that have been weighing on bitcoin’s price have started to fade. China has stepped up its anti-cryptocurrency assault in recent months, focusing on mining and trade. Concerns about bitcoin mining’s carbon footprint are also starting to fade.

According to Luxor Mining’s Brammer, the ambiguity around mining’s environmental impact and Chinese regulatory worries have “worn off.”

 

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