Bitcoin surged above $38,000 after Tesla Inc. founder Elon Musk mentioned the cryptocurrency on his Twitterprofile.
Musk’s page on Twitter simply said#bitcoin with no further explanation, but speculation that the world’s richest man might be a Bitcoin investor was enough to set off a dramatic rally. Prices spiked as much as 15% in a matter of minutes, the biggest intraday move in almost a year.
Bitcoin pared gains later in the London trading day. The cryptocurrency was up 11% to $37,088 as of 11:29 a.m. local time, after jumping as high as $38,089.
“Obviously this huge melt-up is due to Elon’s tweet,” said Antoni Trenchev, managing partner and co-founder of Nexo in London, which bills itself as the world’s biggest crypto lender. 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,” he said.
Musk alsotweeted an image of a “Dogue” magazine cover featuring a whippet in a red sweater — a play on the fashion magazine “Vogue.” He also sent posts calling Cyberpunk a great video game and said, “In retrospect, it was inevitable.”
11:47 PM · Jan 28, 2021
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