Crypto Market Gets Smarter

This week was all about regulations and technology risks.

This week, a Paraguayan legislator made some friendly regulatory changes. Notably, at the moment, Paraguay has control over 45% capacity of the planet’s second-largest hydroelectric dam. However, it uses a little of it.

This week, the cryptocurrency markets announced more sophisticated details of regulatory and technology risk.

Bitcoin Price Jumped Above $39,000

On Monday, Cryptocurrencies traded with gains after Elon Musk said Sunday that Tesla would use Bitcoin again when mining cleaner. It affected cryptocurrency’s price, sending over $39,000 level.

According to CoinDesk, Bitcoin surged more than 10% in the last 24 hours. It traded $39,794.58, adding $3,405 to its previous close. In addition, the coin closely linked to the ethereum blockchain network, Ether, jumped more than 5%, trading almost $2,600, while Dogecoin was trading at $0.35. Other digital coins like XRP and Litecoin also experienced a rise of more than 6% in the last 24 hours.

Bitcoin, the world’s best-known and most prominent cryptocurrency, is up 40.8% from the year’s low of $27,736 on Jan.

On Sunday, Tesla Inc CEO Elon Musk tweeted that the electric carmaker would resume accepting bitcoin transactions when miners verify the use of more renewable energy. Musk has been a significant promoter of cryptocurrencies. Still, it turned out to be critical for bitcoin since he suspended Tesla’s plans to take it as payment for vehicles. He was citing concerns that the computers working on mining used too much energy.

Musk has played with Bitcoin and various digital tokens in the past several months. In March, he endorsed Bitcoin and said that people could buy a Tesla car. In February, Tesla announced that it bought $1.5 billion worth of Bitcoin and showed its intent to accept Bitcoin as payment for cars. However, in May, Musk tweeted again that he suspended this option because of the concerns about fossil-fuel usage for transactions and Bitcoin mining.