Key Points:
- Bitcoin and tech stocks are once again moving in sync, with a 0.4 correlation coefficient, marking a turnaround from previous divergence.
- Clean energy usage in Bitcoin mining now surpasses 50%, aligning with Elon Musk’s conditions for Tesla to accept Bitcoin payments.
- This shift towards sustainability in cryptocurrency could have substantial impacts on both the crypto industry and global energy dynamics.
In a fascinating turn of events, Bitcoin is once again showing a strong correlation with technology stocks, particularly the Nasdaq 100 Index, in a development that could pique the interest of both equity investors and cryptocurrency enthusiasts. This revival of synergy comes after a period of divergence between these asset classes in June.
The Nasdaq 100 Index, the poster child of the tech world, has surged by more than 40% this year, driven by the excitement surrounding artificial intelligence. According to Bloomberg, the 30-day correlation coefficient for Bitcoin and the Nasdaq 100 has rebounded to nearly 0.4, a stark contrast to the negative 0.1 observed in June and July.
In related news, Bloomberg’s crypto analyst, Jamie Coutts, reported that Bitcoin’s clean energy usage in mining operations has exceeded the crucial 50% threshold. Coutts bases his findings on the latest insights from the Cambridge Center for Alternative Finance, which recently revised its estimates of Bitcoin mining power consumption downward, taking into account sustainable energy sources like off-grid electricity and reduced reliance on fossil fuels.
Notably, since China‘s mining ban in mid-2021, emissions associated with BTC have dropped by 37.5%, dispelling some concerns about its environmental impact.
This development aligns with Elon Musk‘s statement in June 2021, when he indicated that Tesla would resume accepting BTC payments once the cryptocurrency’s mining operations became more environmentally friendly. Tesla’s previous $1.5 billion investment in BTC.
As Bitcoin’s clean energy usage surpasses the 50% mark and emissions continue to decline, the cryptocurrency industry’s pivot towards sustainability could have far-reaching implications for global energy dynamics. This shift is a testament to the ever-evolving landscape of digital currencies and their integration into the broader financial ecosystem.
DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
