On Tuesday (December 31), Bitcoin price fluctuated dramatically by over $2300, soaring to a high of $95024 before falling back to around $92600. The clean energy usage rate for Bitcoin has now exceeded 50%, and billionaire Elon Musk previously stated that when this condition is met, Tesla would again accept Bitcoin payments. With the inauguration of Donald Trump, the elected President of the United States, drawing closer, Trump trades are back in focus.
Bitcoin's clean energy usage rate exceeds 50%, and Tesla is expected to reintroduce payments.
For years, Bitcoin miners have been focused on environmental issues, and today they are taking significant steps towards sustainability, with more than 56% of mining energy coming from renewable sources, a development that could pave the way for Tesla to reintroduce Bitcoin as a payment method.
This achievement in Bitcoin meets the conditions set by Tesla CEO Elon Musk, who previously stated that once renewable energy consumption exceeds 50%, the company will resume Bitcoin payments. This development has sparked expectations that Tesla will reinstate Bitcoin as a payment method for its electric vehicles.
In recent years, Bitcoin miners have made significant progress in using cleaner energy. Regions like Quebec, Iceland, and Texas have attracted miners due to their diverse renewable resources such as hydroelectric, geothermal, and wind energy. Hydropower currently leads renewable energy generation with a 23% share, followed by wind energy (5%) and solar energy (2%).
Bitcoin mining consumes about 127 terawatt-hours of electricity each year but still faces challenges regarding carbon emissions. Despite an increase in the use of clean energy, Bitcoin mining still emits about 69 million metric tons of carbon dioxide annually. Although positive progress has been made in clean energy use, it still raises significant environmental concerns.
Although nuclear energy is non-renewable, it accounts for 9% of the energy used in Bitcoin mining. Additionally, geothermal energy has also driven Bitcoin mining to use clean energy, such as in El Salvador. However, coal still accounts for 22% of energy usage, down from 40% in previous years.
Traders are now anticipating Tesla to reintroduce Bitcoin payments, which Musk initially suspended in May 2021 due to environmental concerns. Therefore, after Bitcoin miners reach the 50% renewable energy threshold, many believe Tesla may take action.
Musk has been identified by Trump as the leader of the newly established Department of Government Efficiency (DOGE), as he actively campaigned for Trump during the November presidential election in the U.S. Following Trump's victory, he has promised to adopt a friendlier stance towards Bitcoin and cryptocurrencies, paving a bright future for crypto regulation.
The potential returns of Bitcoin payments may be influenced by geopolitical and economic factors, and the relationship between Musk and Trump may play a role in shaping future Bitcoin and digital asset regulatory policies. Moreover, Trump's support for Bitcoin has increased optimism among Bitcoin supporters for favorable regulatory policies.
As Bitcoin miners turn to renewable energy, some industry participants, such as Riot Platforms and MARA Holdings, are increasing their investments in sustainable energy. Despite the increase in clean energy use, Bitcoin mining remains an expensive investment due to the global energy crisis. Additionally, with rising operating costs, mining companies continue to purchase Bitcoin to solidify their positions.
MicroStrategy increases its holdings by 2138 Bitcoins, maintaining its buying strategy unchanged.
Wall Street-listed whale MicroStrategy continues to aggressively increase its Bitcoin holdings, investing an additional $209 million to acquire 2138 Bitcoins.
According to the announcement, the average purchase price of these Bitcoins was $97837. Furthermore, these Bitcoins were purchased between December 23 and 29, 2024, bringing the company's total Bitcoin holdings to 446,400, valued at approximately $41.8 billion based on current market prices.
MicroStrategy sold 592,987 shares to fund this acquisition, with net proceeds of approximately $209 million. As of December 30, the company plans to issue $21 billion in stock, with approximately $6.8 billion worth of shares available for sale.
The company's co-founder Michael Saylor stated that after reaching a $42 billion Bitcoin investment target, the company will reconsider its capital allocation plan.
Subsequently, MicroStrategy announced plans to hold a special meeting to vote on proposals to enhance its Bitcoin acquisition strategy, including increasing the authorization of Class A common stock from 330 million shares to 10.33 billion shares and increasing the authorization of preferred stock from 5 million shares to 1.005 billion shares, providing greater flexibility for future Bitcoin purchases.
Since the launch of the 21/21 plan, MicroStrategy has acquired over 194,000 Bitcoins, valued at approximately $18 billion, achieving about 42% of its investment target in less than two months.
This acquisition marks the company's eighth consecutive week of buying Bitcoin. Notably, last week, MicroStrategy purchased 5000 Bitcoins for $561 million while Bitcoin had not yet been included in the Nasdaq 100 index.
Bitcoin Technical Analysis
Economies.com states that Bitcoin prices currently show negative trading, suggesting a return to the expected corrective bearish trend, targeting $91000, followed by $87055 as the next negative point, noting that EMA 50 supports the suggested bearish wave.
Unless it breaks through $95195, followed by the $96140 level and maintains above it, this wave will remain valid.
