Bitcoin (BTC) Price Soars Over 15% After Elon Musk Namecheck on Twitter

By Mariliana Fotopoulou Friday, January 29, 2021

Bitcoin price has soared more than 15% early this morning after Tesla CEO Elon Musk included the hashtag #bitcoin in his Twitter bio.

Blurred city shot with arrow pointing upward and bitcoin to show rise.

The Power of a Tweet

The world’s number one cryptocurrency jumped to $37,299 within an hour, according to TradingView data. BTC price advanced even more in the early hours to trade at a daily high of $38,620.

After adding the hashtag to his bio, Musk followed up with a cryptic tweet:

“In retrospect, it was inevitable.”

Bitcoin price reached its all-time high of $41,940 on January 8 before experiencing a sharp pullback of around 30% the following week.

The cryptocurrency is currently trading about 12% lower compared to its record high, but still 25% up year-to-date. Its price surged more than 200% in 2020, driven by a surge in demand from large institutional investors.

Cryptocurrency enthusiasts have started speculating whether Musk’s inclusion of a Bitcoin hashtag suggests that Tesla will be investing in the cryptocurrency or add it into its balance sheet.

A month ago, Michael Saylor, who serves as the CEO of MicroStrategy company, replied to Musk's tweet that he should “convert the $TSLA balance sheet from USD to #BTC.” This way, Saylor argued, the business magnate would do “a $100 billion favor” to his shareholders.

“Other firms on the S&P 500 would follow your lead & in time it would grow to become a $1 trillion favor,” he added in a tweet.

Tesla’s CEO responded with “are such large transactions even possible?”

This isn’t the first time that Musk’s tweets have prompted extremely volatile reactions in financial markets. He recently tweeted that he liked the new Cyberpunk 2077 video game, driving the CD Projekt’s stock up by 12.6%.

On another occasion, Tesla’s CEO sent out a tweet that he “likes” the ecommerce business Etsy, which ultimately sent shares of the company about 5% higher.

The business magnate then posted a follow-up tweet:

"Bought a hand knit wool Marvin the Martian helm for my dog" he wrote.

After the second tweet, his followers were interested in his purchase and asked for pictures of the dog’s outfit.

Musk’s tweet quickly received thousands of replies and likes, including one from Etsy itself.

"@elonmusk we love you to Mars and back," Etsy tweeted.

Summary

Elon Musk once again proved his power to move financial markets after the addition of a hashtag #bitcoin in his Twitter bio, which sent the world’s largest cryptocurrency soaring over 15%.

About the Author


Headshot for author Mariliana Fotopoulou

Mariliana has an MSC in consumer analytics and business strategy. She has a special interest in fast-moving industries and big data.

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