Day after recovering sharply from the week-long slump, cryptocurrencies improved their position further as the virtual coin market saw higher buying activity on Thursday.

However, the reason behind the sharp rise in valuation today is a statement from Tesla CEO Elon Musk that propelled the value of Bitcoin, the world’s most popular cryptocurrency. Most other virtual coins piggybacked on Bitcoin’s gains.

Elon Musk said Tesla would “most likely” resume accepting Bitcoin for payments at the B Word Conference. Soon after his comment, the value of Bitcoin rose. A few months ago, Musk said the electric carmaker would stop accepting Bitcoin for payments, citing its adverse environmental impact of mining the virtual coin.

 















"I wanted a little bit more due diligence to confirm that the percentage of renewable energy usage is most likely at or above 50 per cent, and that there is a trend towards increasing that number, and if so Tesla would resume accepting Bitcoin,” he added.

Musk also confirmed that he personally held Bitcoin and other cryptos including Ether and Dogecoin.

Bitcoin shares jumped as much as 9 per cent while Ether rose over 11 per cent. At 12:20 am on Thursday, Bitcoin was trading at over $32,000, up nearly 4 per cent. Ether also inched closer to $2,000, rising nearly 6 per cent. 

All other popular cryptocurrencies rose including XRP, Cardano, Stellar, Dogecoin, Uniswap, Litecoin, Polkadot and Chainlink.

Commenting on the strong rebound, Edul Patel, CEO and Co-founder of Mudrex, a global algorithm based crypto trading platform, said, “The past 24 hours were a major trend reversal for the cryptocurrency spectrum.”











 

“After days of intense sell-off, the bulls have finally managed to overpower the bears. Bitcoin is hovering around the $32,000 mark now, which makes the investors pretty happy. The Altcoins had an even more wonderful rally.”

“ETH is inching closer towards the $2000 mark. Markets remained highly volatile. Over the next few days, we can expect the markets to settle down a bit."

Elon Musk’s statement boosts Bitcoin, other virtual coins