North American Bitcoin Miners To Form Coalition After Meeting With Musk, According to Saylor
Elon Musk tweeted, and like magic Bitcoin’s price pushed through and beyond an important resistance area. At the time of writing, BTC trades at $38,956 with a 9,92% profit in the daily chart according to CoinMarketCap.
The cryptocurrency had a hard weekend, and as per previous cycles the entire crypto market felt it. Some of the altcoins saw 40% to 60% corrections. Now, they seemed to be bouncing back along with BTC’s price.
Most experts agreed that the crash was predictable, but Tesla’s CEO Elon Musk’s influence was very likely a part of what sent the market on a downtrend. Musk made two crucial statements via Twitter at a critical moment when Bitcoin’s price was trying to maintain support at $47,000 and $43,000.
He first said that Bitcoin mining has a negative impact on the environment, which set off a series of angry tweets by the BTC community. Then, frustrated by the negative responses, he threatened to dump Tesla’s $1.5 billion in BTC. Part of the crypto community went against the entrepreneur. Now, as the price struggled, Musk tweeted the following:
Spoke with North American Bitcoin miners. They committed to publish current & planned renewable usage & to ask miners WW to do so. Potentially promising.
“Spoke with North American Bitcoin miners. They committed to publish current & planned renewable usage & to ask miners WW to do so. Potentially promising.“
Michael Saylor, CEO of software company MicroStrategy, tweeted having hosted a meeting between the BTC mining sector and Musk. According to the executive, the miners have agreed to form the Bitcoin Mining Council:
Yesterday I was pleased to host a meeting between @elonmusk & the leading Bitcoin miners in North America. The miners have agreed to form the Bitcoin Mining Council to promote energy usage transparency & accelerate sustainability initiatives worldwide. https://t.co/EHgLZ9zvDK
“Yesterday I was pleased to host a meeting between Elon Musk and the leading Bitcoin miners in North America. The miners have agreed to form the Bitcoin Mining Council to promote energy usage transparency & accelerate sustainability initiatives worldwide.”
The organization will have support from mining pools Argo, Blockcap, Hut8, Marathon Digital Holdings, Riot; Core Scientific, an infrastructure and software solution based on blockchain technology; investment firm Galaxy Digital, and HIVE Blockchain technologies.
The Bitcoin Mining Council will: “standardize energy reporting, pursue industry ESG goals, & educate+grow the marketplace”, according to MicroStrategy CEO.
Bitcoin Community Not United On Mining Initiative
The reaction from the crypto community was mixed. While some celebrated the initiative, others completely rejected it and claimed that “private” meetings are not in the spirit of Bitcoin. Marty Bent, the host of the podcast Tales From The Crypt, said the following on the initiative:
"They don't care about clean energy; they care about control. #Bitcoin has one of, if not the highest mix of renewable energy use in any major industry." – @MartyBent
— Documenting ₿itcoin ? (@DocumentingBTC) May 24, 2021
“They don’t care about clean energy; they care about control. #Bitcoin has one of, if not the highest mix of renewable energy use in any major industry.”
Before Elon Musk’s announcement, the market sentiment was still mostly bearish. After, over $8 million in short positions liquidations were recorded across all exchange platforms, as reported by analyst William Clemente III.
Despite price up 12%, funding rates are still negative; traders are in disbelief.
This means that price increase is driven by organic spot buying. (also shown by exchange outflows)
If spot buyers can push the price up high enough, we might be setting up for a big short squeeze. pic.twitter.com/0lE93LguzH
The market has now reset and awaits confirmation of a more persistent bearish or bullish trend. The price action, at least in the lower time frames, seems to be more inclined to favor the optimists. Clemente said: “Bears in disbelief”.
