Bitcoin jumps 6% to $34,646 after Elon Musk’s tweet

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Bitcoin value is up by 6% and is currently trading at $34,700 after its value dropped under $30,000 for the first time in five months. On June 22 Bitcoin sank as low as $29,334, a level that was last seen in January. Meanwhile, Tesla’s chief executive officer Elon Musk again tweeted on Friday mocking Bitcoin maximalists with a lightbulb joke.

How many Bitcoin maxis does it take to screw in a lightbulb?

— Elon Musk (@elonmusk) June 25, 2021

Ether, the second-biggest cryptocurrency, is also up by 2.8% at $1,970. Dogecoin and Binance Coin are up by 10% and 5.54%, respectively. The global crypto market cap is currently at $1.39 trillion, a 4.66% increase over the last day, according to Coinmarketcap.com.

Previous crash

Bitcoin went through a massive crash on May 19 after Musk announced that Tesla would no longer accept the cryptocurrency citing environmental concerns. However, a week before Elon Musk tweeted on Sunday that he will resume Bitcoin transactions provided miners who verify transactions use more renewable energy. Musk also said that Tesla sold about 10% of its holdings to confirm that Bitcoin could be liquidated easily without moving the market. He replied to a Cointelegraph’s post where Sygnia CEO Magda Wierzycka lambasted him saying “What we have seen with Bitcoin is price manipulation by one very powerful and influential individual.” After his tweet Bitcoin prices went up by 11% near $40,000 levels.

China crackdown

Moreover, there have been concerns over China’s ongoing crackdown on the world’s oldest cryptocurrency. Regulators appear to worry that despite the 2013 ban on Chinese banks and other institutions handling cryptocurrencies, the state-run financial system might be indirectly exposed to risks. Beijing also worries users might evade efforts to monitor and control the financial system.

“Customers are asked to be more aware of risks, safeguard bank accounts and not to use virtual currency-related transactions,” China Construction Bank Ltd. said on its website. Similar promises were issued by Industrial and Commercial Bank of China Ltd., Bank of China Ltd., Agricultural Bank of China Ltd., Postal Savings Bank of China Ltd. and Alipay, operated by Ant Group.

(AP contributed to this story)