On Tuesday (December 31), Bitcoin prices fluctuated by over $2,300, surging to a peak of $95,024 before falling back to around $92,600. Bitcoin's clean energy usage rate has now exceeded 50%, and billionaire Musk previously stated that when this condition occurs, Tesla will once again accept Bitcoin payments. With the inauguration of Donald Trump as President of the United States approaching, Trump trades are back in focus.
Bitcoin clean energy usage exceeds 50%, and Tesla is expected to introduce payments.
For years, Bitcoin miners have been focusing on environmental issues, and now they are making significant strides towards sustainability, with over 56% of mining energy coming from renewable sources. This progress could pave the way for Tesla to reintroduce Bitcoin as a payment method.
This achievement in Bitcoin meets the conditions set by Tesla CEO 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 hydro, 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. While positive progress has been made in clean energy usage, significant environmental issues remain.
Although nuclear energy is non-renewable, it accounts for 9% of Bitcoin mining energy. Additionally, geothermal energy is also driving the use of clean energy in Bitcoin mining, such as in El Salvador. However, coal still accounts for 22% of energy usage, a decrease from 40% in previous years.
Traders are now expecting Tesla to reintroduce Bitcoin payments, which Musk initially suspended in May 2021 due to environmental concerns. As more than 50% of Bitcoin miners reach the 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 U.S. presidential election in November. Under Trump's victory, he has promised to adopt a friendlier stance on Bitcoin and cryptocurrencies, creating a bright outlook for crypto regulation.
The potential returns of Bitcoin payments may be influenced by geopolitical and economic factors, with Musk's relationship with Trump potentially playing a role in shaping future Bitcoin and digital asset regulatory policies. Additionally, Trump's support for Bitcoin has increased optimism among Bitcoin supporters regarding favorable regulatory policies.
As Bitcoin miners shift towards renewable energy, some industry players like Riot Platforms and MARA Holdings are increasing investments in sustainable energy. Despite the increase in clean energy use, Bitcoin mining remains an expensive investment due to the global energy crisis. Furthermore, with rising operating costs, mining companies continue to purchase Bitcoin to solidify their positions.
MicroStrategy increased its holdings by 2,138 Bitcoins, maintaining its buy strategy.
Wall Street-listed giant MicroStrategy continues to aggressively increase its Bitcoin holdings, investing an additional $209 million to acquire 2,138 Bitcoins.
According to the announcement, the average purchase price for these Bitcoins was $97,837. Furthermore, these Bitcoins were acquired between December 23 and 29, 2024, bringing the company's total Bitcoin holdings to 446,400 coins, valued at approximately $41.8 billion based on current market prices.
MicroStrategy sold 592,987 shares to fund this acquisition, netting approximately $209 million. As of December 30, the company plans to issue $21 billion in stock, of which about $6.8 billion worth will be available for sale.
The company's co-founder, Michael Saylor, stated that after reaching the $42 billion Bitcoin investment goal, 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 authorized Class A common stock from 330 million shares to 10.33 billion shares and increasing the authorized preferred stock from 5 million shares to 1 billion shares, providing greater flexibility for future Bitcoin purchases.
Since launching 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 purchasing Bitcoin. Notably, last week, MicroStrategy purchased 5,000 Bitcoins for $561 million, at a time when Bitcoin was not yet included in the NASDAQ 100 index.
Bitcoin Technical Analysis
Bitcoin prices currently show negative trading, suggesting a return to the expected correction bearish trend, targeting $91,000, followed by $87,055 as the next negative station, noting that the EMA 50 support suggests a bearish wave.
The wave will remain valid unless it breaks above $95,195 and then $96,140 and stays above those levels.
