Bitcoin breaks above US$40,000 following Tesla payment news

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Bitcoin has moved above US$40,000 in value for the first time in over two weeks as news that Tesla could potentially begin re-accepting the digital currency as a payment sparked a rally in crypto markets.

In late afternoon trading in London, Bitcoin was up 13% in the last 24 hours at US$40,613, giving it a market cap of just over US$760bn.

READ: Bitcoin bounces as Musk says Tesla plans to resume payments

The surge followed a tweet from Tesla boss Elon Musk on Sunday night in which he said the electric car maker planned to re-accept Bitcoin as a payment method once its miners used at least 50% clean energy in the process.

Musk originally halted payments for Tesla products using Bitcoin in mid-May following concerns about its energy usage and environmental impact, and while he did not specify how the company would confirm the 50% threshold of clean energy usage among miners, the comments mark the first time the billionaire has specified criteria for the company to resume payments in Bitcoin.

Shares in Tesla also got a bump on the back of the news, rising 1.9% to US$621 in early trading in New York.

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