- The price of Bitcoin surged more than 17 percent as Tesla’s founder Elon Musk changes his Twitter Bio to Bitcoin
- Elon Musk changed his Twitter profile to just “#bitcoin,” and tweeted, “In retrospect, it was inevitable.”
- The quick spike saw Bitcoin set a 14-day high of $38,406
Bitcoin experienced a quick spike on Friday as the founder of SpaceX and Tesla’s CEO, Elon Musk, updated his Twitter profile to “#bitcoin.” The move from the billionaire comes just days after he and other leading figures in the tech industry, backed GameStop to an astonishing 1,600 surge of its shares.
Elon Musk Backs Bitcoin
Leading business magnate, engineer, and founder of SpaceX and Tesla, Elon Musk, is no stranger to the crypto industry. On multiple occasions, the inventor had Tweeted his approval of DogeCoin. In December when he tweeted “One word: Doge” the altcoin has soared over 25 percent.
On Friday morning, the billionaire updated his Twitter profile to “#bitcoin” the cryptically tweeted “In retrospect, it was inevitable.” The move sparked a bull-run that saw Bitcoin climb by over 17 percent in the hours following the Tweet.
Bitcoin which traded as low as $32,064 before the Tweet on Friday morning, reached an intraday high of $38,406, marking the highest point the leading cryptocurrency has reached in the last 14 days.
Bitcoin had hit an all-time high of over $41,000 earlier this month. The move was driven by an influx of institutional investors, a record amount of economic stimulus, and inflationary fears from investors.
On the Flipside
- Bitcoin miners have been selling large amounts of the crypto for the first time since October
- The move has been detrimental to the very volatile asset.
- Bitcoin’s price dropped as much as 10% during early trading hours on Tuesday, as the sell-off intensifies
Reactions to Elon Musk’s Tweet
There have been a lot of reactions to the Tweet by Elon Musk, with many suggesting that his cryptic Tweet meant that he either has bought Bitcoin or will be investing in the digital asset very soon.
In December Elon Musk had enquired about the possibility of making a large-scale Bitcoin purchase after Microstrategy’s chief executive, Michael Saylor, encouraged the billionaire businessman to convert a portion of Tesla’s holdings to Bitcoin.
At the time, his inquiries were met with speculations that Elon Musk was considering the possibility of purchasing Bitcoin. For some, this is more than just a confirmation that he indeed is truly interested in making Bitcoin purchases.
On another hand analysts like Neil Wilson, the chief market analyst at Markets.com are of the opinion that assets shouldn’t be influenced by social media posts the way Bitcoin was.
He also noted that;
Assets that can be moved this easily by social media, whether Twitter or Reddit, are liable for large intra-day moves and subsequently could be too hot to handle for many. It's getting wild out there.
Since the spike, the bulls have lost control of the market with Bitcoin dropping more than 9 percent of its value in the last 24 hours. Bitcoin currently exchanges hands at $34,353, a further confirmation of the wildness of the crypto market.