Powered by Elon Musk’s hashtag #bitcoin, the cryptocurrency traded 16 per cent higher at around $36,423. Over the past couple of months, Bitcoin has proved to be very much attractive as an asset with investors ready to fish out thousands for it.
This isn’t the first time that Musk’s tweeting habits have led to a spike in the price of an asset. Just two days ago, he helped extend a rally in GameStop’s share price after tweeting “GameStonk” and linking to the WallStreetBets Reddit community. Musk added #bitcoin to his Twitter bio earlier Friday morning accompanied by a cryptic tweet, “In retrospect, it was inevitable.”
Antoni Trenchev, managing partner and co-founder of Nexo in London, said this huge melt-up is due to Elon’s tweet. He said Musk’s support for Bitcoin creates a safe zone for some of the smaller companies and possibly everyone in the S&P 500 to allocate into Bitcoin. Bloomberg highlighted traders trying to read between the lines of Musk’s tweet interpreted his cryptic messages as support for Bitcoin and Dogecoin, a digital coin originally created as a joke. Dogecoin prices skyrocketed higher on Friday, jumping about 300 per cent in the last 24 hours to $0.04355.
According to CNBC, this comes after much speculation about whether the Tesla CEO will buy Bitcoin or add the cryptocurrency to his electric car firm’s balance sheet. The report states that Musk made headlines after a Twitter exchange with the MicroStrategy CEO, a software company, last month after a tweet suggesting he was tempted to buy the digital currency. “If you want to do your shareholders a $100 billion favor, convert the $TSLA balance sheet from USD to #BTC,” MicroStrategy boss Michael Saylor said at the time.
Moreover, MicroStrategy is holding an event next week titled Bitcoin for Corporations. Saylor said there will be thousands of executives, officers and directors and advisors of corporations attending.