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Summary
- Bitcoin skyrocketed over 15 per cent after Elon Musk changed its Twitter profile description to #Bitcoin.
- Dogecoin also went up more than 400 per cent as Musk tweeted a dog’s picture.
- The cryptocurrency’s market cap has rebounded to US$ 1 trillion, with a 15 per cent jump on January 29.
Bitcoin (BTC) soared over US$ 38,000 per BTC on the back of Tesla (TSLA:US or NASDAQ: TSLA) CEO and founder Elon Musk’s new Twitter profile bio description ‘#bitcoin’.
The largest crypto token flew from US$ 32,000 to US$ 36000 in less than an hour on Friday, January 29, with crypto traders speculating that the world’s richest man may holding a Bitcoin portfolio.
BTC price rose more than 15 per cent, the highest intraday move in nearly a year.
Bitcoin was up 17 per cent to $37,100 as of 7:30 a.m. ET, with a one-day traded volume of US$ 83 billion. The virtual coin has been trading volatilely for the past few weeks after hitting its all-time high of US$ 41,940 per token.
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.
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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.
