Bitcoin was trading around $ 38,767.62 at 3:30 a.m. ET on Tuesday and its price has risen more than 9% in the past 24 hours, according to data from CoinDesk.
Almost all of the other major cryptocurrencies are also higher.
Ethereum’s price has risen over 15% in the past 24 hours to $ 2,634.79, while Dogecoin has seen its price rise over 8% to 35 cents a coin.
A small handful of lesser-known cryptocurrencies such as Tether and Dai have seen their prices drop in the past 24 hours, but the declines are negligible.
Bitcoin, the world’s most popular cryptocurrency, jumped minutes after Musk tweeted, “Talked to North American Bitcoin miners. They have committed to publishing current and planned renewable use and asking WW miners to do so. Potentially promising. “
The coin initially jumped 4% to hit $ 39,824.81 a few hours later, before falling back to nearly $ 38,000.
Microstrategy CEO Michael Saylor followed up on Musk’s tweet, saying he had arranged a meeting between Tesla CEO and some Bitcoin miners which led to the formation of the Bitcoin Mining Council, which will promote sustainability.
Mining Bitcoin requires large amounts of energy. As a result, bitcoin has a carbon footprint comparable to that of New Zealand, producing 36.95 megatons of CO2 per year, according to Digiconomist.
Musk has been a big proponent of cryptocurrencies, spurring the prices of digital coins, including bitcoin, on several occasions over the past year. His cryptocurrency tweets and comments often drive prices up or down.
In an SEC filing in February, Tesla revealed that it had purchased $ 1.5 billion worth of bitcoin and would accept it as a method of payment. The company later said it had a net gain of $ 101 million on bitcoin sales in the quarter, helping to push its net profits to an all-time high in the first quarter.
However, Musk’s relationship with the digital coin appeared to change earlier this month. He tweeted on May 12 that the company “had suspended vehicle purchases” using bitcoin, out of concern over “the rapid increase in the use of fossil fuels” for bitcoin mining.
Bitcoin’s rally this week comes after turbulence in the crypto markets that saw its price drop below $ 32,000 on Sunday.
Last week’s crypto sell-off came after Chinese and US authorities decided to tighten cryptocurrency regulation and tax compliance.
Chinese authorities on Friday called for tighter regulations on mining and trading cryptocurrencies, and the U.S. Treasury on Thursday said it would demand tighter crypto compliance with the IRS.
– Additional reporting by Jessica Bursztynsky of CNBC.