The price of the main cryptocurrency has added 18% since Sunday, exceeding the 40,000 mark. The rise in the price of bitcoin is associated with another tweet by Elon Musk, who said that Tesla (NASDAQ:TSLA) will start accepting bitcoins again, but in the event that miners switch to using renewable energy sources, namely, “when there is confirmation of reasonable (~ 50%) use of clean energy by miners with a positive trend in in the future.” Musk also stated that Tesla sold only 10% of the previously purchased bitcoins to make sure that it was possible to liquidate the position without significantly affecting the price.
The increase in the price of the main cryptocurrency could also be facilitated by the statement of the well-known investor and hedge fund manager Paul Tudor Jones, who noted that bitcoin is a good tool for portfolio diversification. The investor added that he intends to invest 5% of assets in gold, 5% in bitcoin, 5% in commodities and 5% to keep in the cache. Jones also stated that he considers cryptocurrency as a means of preserving capital.
Investment bank JPMorgan Chase warned of a further drop in the price of bitcoin, expecting the onset of a bearish trend
The bank’s analysts assess the trend in the bitcoin futures market and see a reflection of how weak the demand for bitcoin is at the moment from institutional investors. In particular, analysts note the emergence of backwardation – a situation where futures are traded at a discount to the spot price.
According to technical analysis, in case of consolidation above the level of 42,000, an increase to 47,000 is likely. In case of a return below 33,400, a decrease to 30,000 is likely.