As the gentleman himself mentioned, it was inescapable.
On Friday, Tesla CEO Elon Musk altered his Twitter bio to “#bitcoin.” This by itself maybe wouldn’t be that exciting — following all, Musk expressed his desire in Bitcoin and cryptocurrencies just before — but Musk followed up with a cryptic tweet that could possibly indicate he’s truly bought some Bitcoin.
“In retrospect, it was unavoidable,” Musk tweeted.
This could imply everything and very little. It could be linked to DOGE, a joke cryptocurrency Musk is a enthusiast of and has recently been tweeting about. Or it could be relevant to one thing that is not crypto-connected.
Even so, cryptocurrency Twitter straight away begun speculating about Musk obtaining Bitcoin, or even Tesla investing a portion of its income pile into the cryptocurrency. Software program company MicroStrategy has invested a enormous volume of money into Bitcoin in new months, and its CEO Michael Saylor has been vocal about Bitcoin currently being a far better substitute than funds for a company’s reserves.
In December, Saylor in fact presented Musk — by way of Twitter — some tips on how to order massive amounts of Bitcoin in a firm’s title.
At this level, we you should not know what, precisely, Musk has referred to in his hottest tweet, or regardless of whether he or Tesla individual, or strategy to individual, any Bitcoin. But that didn’t stop speculators from driving the value of Bitcoin up by 19 p.c in a lot less than an hour, up from roughly $32,000 to just short of $38,000. The pump has now subsided, and the rate is sitting down at all over $36,000.
Musk’s tweet arrived at an extremely volatile and frankly, just simple unusual time for money markets. First, it arrived just after a major alternatives expiry for Bitcoin, which arguably manufactured it easier for the rate to go in either route.
Also, Musk’s reviews came amid a trading war in between a bunch of Reddit traders and some enormous hedge resources, which pushed the price tag of GameStop stock up to unprecedented concentrations. The struggle is still raging on, with volatility forcing some buying and selling platforms, which include Robinhood, to temporarily halt acquiring of GameStop and many other shares.
Musk is no stranger to wreaking havoc on the financial marketplaces. His infamous “taking Tesla personal” tweet induced the company shares to surge, landing Musk in issues with the U.S. Securities and Exchange Commission.
Disclosure: The writer of this text owns, or has recently owned, a amount of cryptocurrencies, such as BTC and ETH.