Bitcoin benefited from Elon Musk’s Midas touch after Tesla founder added the cryptocurrency to his Twitter profile, triggering a spectacular rally.
Bitcoin topped $ 38,000 after Tesla Inc. founder Elon Musk mentioned the cryptocurrency on his Twitter profile.
Musk’s Twitter page simply said #bitcoin with no further explanation, but the speculation that the world’s richest man could be a Bitcoin investor was enough to spark a dramatic rally. Prices shot up to 15% within minutes, the biggest intraday move in nearly a year.
Bitcoin subsequently reduced its earnings. The cryptocurrency rose 14% to $ 37,957 at 8 a.m. New York time after hitting $ 38,089. It hit a record high of nearly $ 42,000 on January 8.
“Obviously this huge merger is due to Elon’s tweet,” said Antoni Trenchev, managing partner and co-founder of Nexo in London, which touts itself as the world’s largest crypto lender. Musk’s support for Bitcoin “creates a safe zone for some of the small businesses and maybe everyone in the S&P 500 to be allocated to Bitcoin,” he said.
Musk also tweeted the image of a “Dogue” magazine cover with a whippet in a red sweater – a play on “Vogue” fashion magazine. He also sent in articles calling Cyberpunk a great video game and said, “In retrospect, it was inevitable.”
– Elon Musk (@elonmusk) January 28, 2021
Binance, the world’s largest cryptocurrency exchange by volume, briefly suspended withdrawals on Friday to deal with a surge in requests. General Manager Changpeng Zhao said that user registrations and transactions had reached an all-time high.
“We almost ran out of DOGE parts addresses,” Zhao told Bloomberg. “Our system was unable to generate new addresses fast enough to match the new users. It’s crazy.”
Coinbase, America’s largest digital asset exchange, said it was investigating delays in deposits and withdrawals.
Traders trying to read between the lines of Musk’s tweets interpreted his cryptic messages as support for Bitcoin and Dogecoin, a digital coin originally created as a joke. Dogecoin prices soared on Friday, jumping about 300% in the past 24 hours to $ 0.04355, according to data from CoinMarketCap.
This is not the first time Musk has alluded to crypto assets. Earlier this month, he agreed with a paid Bitcoin benchmark post, and when asked if he owned a Dogecoin, he replied, “No, but maybe someday. “
Cryptocurrency stocks have also increased. Marathon Patent Group Inc. and Bit Digital Inc. grew more than 20% in pre-market commerce in the United States.