Bitcoin Zooms Over US$38,000 Over Elon Musk’s New Twitter Profile Bio

January 30, 2021 03:02 PM AEDT | By Kunal Sawhney

Why is cryptocurrency trending?

Musk’s support for Dogecoin, and now Bitcoin, has created a buying frenzy among cryptocurrency enthusiasts. On Thursday, January 28, he tweeted an edited image from ‘Vogue’ magazine that reads ‘Dogue’. After this tweet, Dogecoin (DOGE) rocketed over 400 per cent, an all-time high.

Reddit chatroom WallStreetBets’ have also been exploring cryptocurrency. One of the popular Redditors’ Twitter handle posted on Thursday ‘What’s a Doge?’. On the back of this tweet, the crypto market witnessed an extraordinary surge.

Image Source: Shutterstock

The two largest crypto exchanges, Binance and Coinbase, observed a delay in buying and selling of Dogecoin because of its unprecedented high-volume rally.

Dogecoin’s one-day traded volume (US$ 7.21 billion) is almost four times its current market cap (US$ 28.87 billion).

Ethereum’s price has crossed the US$ 1,400 mark, it is inches away to breach its record price (US$ 1,476). The second-largest crypto coin has a current supply of more than 114 million.

Cryptocurrency Market Outlook

After 2018’s bubble burst of the crypto industry, traders are still uncomfortable holding a long-term investment in cryptocurrency. However, institutional investors are closely watching the industry, and few of them have started investing in virtual currency.

Meanwhile, monetary regulators have been exploring a regulated cryptocurrency i.e., Central Bank Digital Currency (CBDC). Central banks have not come out with a concrete plan yet, thus making it difficult to predict regulators’ next move for private cryptocurrencies. However, mainstream acceptance of virtual coins is making an impact on policymakers.

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