Elon Musk makes crypto jump after his tweet says Telsa will allow Bitcoin when mining becomes clean

Elon Musk tweeted that his electric car company Tesla will resume allowing Bitcoin transactions when miners who verify transactions use more renewable energy.

“When there’s confirmation of reasonable (~50 percent) clean energy usage by miners with a positive future trend, Tesla will resume allowing Bitcoin transactions,” he said in a tweet on Sunday.

Bitcoin surged about 14 percent in the last 24 hours to $40,829.

Musk’s post was in reply to a report in Cointelegraph, which cited Magda Wierzycka, executive chair of South African asset manager Sygnia, as saying Musk’s recent tweets on Bitcoin should have prompted an investigation by the US Securities and Exchange Commission.

Bitcoin, the world’s biggest and best-known cryptocurrency, is up 40.7 percent from the year’s low of $27,734 on January 4.

Ether, the coin linked to the ethereum blockchain network, surged nearly 10 percent to $2,567.

Musk also said that Tesla sold about 10 percent of holdings to confirm Bitcoin could be liquidated easily without moving the market.

Musk has whipsawed Bitcoin and other digital tokens in the past few months.

In February, Tesla announced it had bought $1.5 billion and signalled its intent to start accepting Bitcoin as payment for vehicles.

In March, Musk tweeted, “you can now buy a Tesla with Bitcoin,” only to say in May that the practice was suspended due to concerns about fossil-fuel usage for Bitcoin mining and transactions. Bitcoin fell more than 10 percent after that tweet.

The U-turn has been controversial, partially because the moves by Tesla and Musk have had noticeable effects on bitcoin’s price.

While there are other issues out there, ranging from institutional adoption and diversification on the positive side to sustainability and regulatory concerns on the negative, a Musk tweet can often change momentum and can dominate the narrative for days or weeks