Bitcoin was trading more than 4% higher early Thursday morning.
The price was around $32,180 per coin, while rival Ethereum was up 7% at 2,004 and Dogecoin was higher by15% at 24 cents per coin, according to Coindesk.
Elon Musk's latest comments are helping to give bitcoin and other cryptocurrencies a boost.
The Tesla CEO says the electric-car maker will most likely restart accepting bitcoin as payments once it conducts due diligence on the amount of renewable energy used to mine the currency, according to Reuters.
Musk made the comments at the B Word conference on Wednesday sending the price of bitcoin as high as 8%.
It is another turnaround after Tesla said in May it would stop accepting bitcoin for car purchases.
"I wanted a little bit more due diligence to confirm that the percentage of renewable energy usage is most likely at or above 50%, and that there is a trend towards increasing that number, and if so Tesla would resume accepting bitcoin" Musk said.
Musk added that he personally owned bitcoin, ethereum and dogecoin, apart from bitcoin that Tesla and SpaceX owned.
In other cryptocurrency news, Core Scientific Holding Co said on Wednesday it would go public through a merger with a blank-check company backed by BlackRock Inc, in a deal that values the cryptocurrency miner at $4.3 billion.
Core Scientific said it had mined 928 bitcoins in the second quarter and forecast revenues of $493 million and $1.1 billion for fiscal 2021 and 2022, respectively, according to Reuters.
The company said it was 100% net carbon neutral and aims to remain so as it grows.
Special purpose acquisition company (SPAC) Power & Digital raised $345 million in an upsized initial public offering in February.