Bitcoin surged above $40,000 on Monday, after another weekend of price volatility after tweets from Tesla chief Elon Musk, who defended himself against criticism over its impact on the market and said Tesla has sold bitcoin but you can resume transactions with it.
Musk says Tesla could use it again

Bitcoin has moved to Musk's opinion for several months since Tesla announced a $1.5 billion bitcoin purchase in February and said it would take the cryptocurrency as a payment. He later said that the electric car maker would not accept bitcoin.

“When there is confirmation of reasonable use of clean energy (~50%) by miners with a positive future trend, Tesla will resume bitcoin trading,” Musk said on Twitter on Sunday.

Bitcoin, which jumped nearly 10% on Sunday, topping its 20-day moving average, rose 4.3% on Monday to 4,0692.27, its first foray above $ 40,000 in more than two weeks.

"Musk's words made Bitcoin skyrocket," said Simon Peters, market analyst at eToro.

Bitcoin also surged on Monday after billionaire hedge fund manager Paul Tudor Jones told CNBC Monday that Bitcoin is a great way to protect your wealth for the long term and is part of your portfolio just like gold.

Bobby Ong, the co-founder of cryptanalysis website CoinGecko, said bitcoin prices have also helped the software company and MicroStrategy, a major bitcoin backer, raise $ 500 million to buy bitcoins.

Bitcoin is up about 40% this year but has tumbled from a record high of over $ 60,000 amid a regulatory crackdown in China and Musk's enthusiasm for it appears to be wavering. Tesla shares are down roughly 30% since the company's bitcoin purchase.

Musk's tweet came in response to an article based on comments by Magda Wirzyzka, president of cybersecurity firm Syngia, who accused him in a radio interview last week of "price hikes" and of selling a "big chunk of "of your exhibition.

"It's not exact," Musk said. "Tesla only sold about 10% of its holdings to confirm that BTC can be easily liquidated without moving the market."

Musk tweeted in May that Tesla "would not sell any bitcoins" and "did not sell any bitcoins," but investors are eagerly awaiting Tesla's next earnings update, due next month, for any disclosure of any changes in their position.

Musk has struggled with the enormous computing power required to process bitcoin transactions, and in early June, he posted messages that appeared to lament the disintegration of bitcoin.

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