Bitcoin jumps $5K in minutes following Elon Musk’s advertisement of the currency on Twitter. The price went from $31K to $36K. Dogecoin to Bitcoin: Elon is winning.
Elon Musk, the CEO of Tesla and the world’s second-richest man, is often known as a crypto-friendly billionaire in financial circles. He has often caused crypto pump with his tweets regarding cryptocurrencies. In December last year, Elon’s mention of Dogecoin on Twitter caused the price of the coin to surge by 20%. He is also been known to have put ‘CEO of Dogecoin‘ in the bio of his personal Twitter account.
In the recent episode of Elon induced value surge, the price of bitcoin jumped by $5000 in minutes after Mr Musk put #bitcoin in his Twitter profile’s bio section.
Later on, Elon tweeted some out-of-context sentiment in the following words.
In retrospect, it was inevitable,
Price of Bitcoin:
The data shows bitcoin’s price hitting $38K at the moment. BTC price has been rallying downward for some time now. Nonetheless, analysts were confident about the bullish rally of bitcoin. The investors kept buying bitcoin despite the falling price.
BTC is the second cryptocurrency to have a boost from social media. Previously on Jan 28th, DOGE had a surge of 80% within a day after the parody account posing to be the founder of Reddit group r/wallstreetbets mentioned the currency in a tweet. According to Cointelegraph’s report, the dogecoin’s 24-hour tweet volume went up by 18000% surpassing bitcoin.
The price surge over social sentiment is a common thing in the cryptocurrency market. We are not sure yet whether this push is a sign of another bull run or just a bleep on the chart. Nevertheless, amateur investors will likely jump on the bitcoin bandwagon again. This will lead to demand and supply discrepancy which is the major cause of the increase in BTC’s price.