Bitcoin Price Shoots Past $38,000 on Elon Musk’s Endorsement

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Elon Musk changed his Twitter bio to one word: Bitcoin.

The billionaire entrepreneur, whose opinion on the benchmark cryptocurrency has juggled between skepticism and praise, seemed to have taken a clear stance on it. In a tweet that followed shortly after the bio update, Mr Musk said that “it was inevitable in hindsight”.

That was enough for bitcoin bulls to take control in an otherwise short-term bearish market. Mr. Musk’s tweet prompted them to raise their bids on the cryptocurrency. As a result, the cost of buying a Bitcoin rose from nearly $ 32,000 to over $ 38,000 in just two hours.

In retrospect, it was inevitable

– Elon Musk (@elonmusk) January 29, 2021

Bitcoin on Tesla’s balance sheet?

Mr. Musk’s cryptic tweet and biography led to theories about the possibility that his companies Tesla and SpaceX would include Bitcoin on their balance sheets. Meanwhile, many took it as an open-air advertisement for the world’s largest cryptocurrency for Mr. Musk’s 43.8 million followers, many of whom are notable cryptoskeptics like Nouriel Roubini and Peter Schiff.

“The fact is, we don’t know if Elon Musk Adding Bitcoin to its bio means something, ”warned Alex Krúger, an independent market analyst, nonetheless. “We have to wait for that. Now, however, everyone is considering adding Tesla Bitcoin to his balance sheet. Which would be massive. The possibility alone is enough to make the market roar. “

Bitcoin tends to respond positively to high profile mentions. Recently, JPMorgan’s bitcoin price prediction of $ 100,000 last year, for the first time in history, caused the cryptocurrency to price over $ 35,000. Similarly, PayPal’s decision to add Bitcoin services helped the company break its previous record of $ 20,000, which it has not seen since December 2017.

Bitcoin breaks the 20-day moving average to signal an expanded bullish bias. Source: BTCUSD on TradingView.com Bitcoin breaches the 20-day moving average to signal an expanded bullish bias. Source: BTCUSD on TradingView.com

But Mr. Musk’s tweet also came at a time when his so-called favorite cryptocurrency, Dogecoin, returned to the bearish side after rising 1,100 percent in just two days. It’s hard to say whether Mr. Musk is trolling or promoting Bitcoin – in part because Dogecoin is a hoax cryptocurrency.

In both cases, the flagship cryptocurrency was able to break out of its two-week downward slope with the rally on Friday. The wild upward move also helped it break above its 20-day moving average, indicating a prolonged upward move in the coming sessions.