On the strength of major bullish from last week, the flagship cryptocurrency has returned to the $40,000 trading zone. Although many believe Elon Musk’s tweet regarding Tesla accepting bitcoin as a form of payment again if the energy used in mining is up to 50% renewable has sparked the recent spike, the bullish trend, on the other hand, began last week when El Salvador authorized bitcoin as a form of payment.
The sudden positive trend in Bitcoin
The El Salvadorian Congress passed a bill last week Monday making bitcoin legal tender in the country for day-to-day transactions. This effort was aided by El Salvador’s president, who declared the prospect of volcano-based mining for bitcoin miners considering relocating their operations to the country.
As a result of this news, Bitcoin has increased in value from around $30,000 to around $35,000.
At the same time as El Salvador’s efforts, MicroStrategy, led by CEO Michael Saylor, stated that it plans to make a $500 million investment in Bitcoin.
The company already owns over 90,000 BTC and is looking to leverage more on the flagship cryptocurrency.
Bitcoin, after 4 years finally gets a facelift called “Taproot”. Taproot is focused on giving Bitcoin a new signature scheme known as Schnorr signatures. This upgrade to the Bitcoin code opens up new possibilities for privacy,multisignature wallets, security, and scaling. After 90% of miners voted for the upgrade through “Speedy Trial”, the upgrade is expected to take full effect in November 2021.
These reports are thought to be driving Bitcoin and the broader cryptocurrency market higher. As of the time of writing this story, the flagship cryptocurrency was trading at $40,300, up 13% on the day.
