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Elon Musk On Clubhouse: I Am Supporter Of Bitcoin

BitForex Editor
Feb 05, 2021

Elon Musk's name is not strange to hear as he is currently referred to as the wealthiest person in the world, which is no small feat. Being a notable figure, Elon Musk has always been in the news for one reason or another; however, his name was abuzz a few days ago when he publicly declared his support for Bitcoin.

Early Friday, the CEO of Tesla added "#Bitcoin in his Twitter bio," which brought about an eruption of good vibes on Bitcoin Twitter. He also explicitly declared his support for the cryptocurrency on the now popular social media audio chat app "Clubhouse." Though Musk talked about a possible mission to Mars, during the discussion he, however, and more importantly publicly declared his support for Bitcoin. He also tweeted that it was inevitable.

Elon Musk, while clearly saying he had to be careful with what he says as they could move the market and that was evident from the rise in bitcoin price after his endorsement, also went further to explain how many of his friends for a long time had tried to get him involved in Bitcoin. Musk also said how in 2013, he ate a piece of "Bitcoin cake" which was given to him by a friend, as well as how eight years ago he should have bought some bitcoin while clearly admitting he was true "late to the party."

Having shown support for the cryptocurrency, he declared that within a short amount of time, it would get accepted by finance organizations. Musk also revealed that he didn't have a "strong opinion" on the other virtual currencies. In the past, he had tweeted about dogecoin, the meme-based cryptocurrency, and how he indicated that it was his "favorite cryptocurrency." He quickly cleared the air when wrong assumptions were made by saying he was only making jokes; however, he also said it would be an ironic and entertaining outcome if dogecoin became earth's currency in the future.

Bitcoin Surge; "The Elon Musk Effect"

In the past, Elon Musk was known for sometimes teasing the crypto community by name-dropping dogecoin and bitcoin; however, he never truly declared that he was a supporter of any cryptocurrency that was until a few days ago when he made changes to his Twitter bio, indicating his support for the most popular cryptocurrency in the world, bitcoin. The sudden change in his biography prompted a 15% rise in the price of bitcoin, in what can only be referred to as "the billionaire effect.

According to Reuters, the most prominent cryptocurrency globally, Bitcoin was at 36,901 dollars after the cryptocurrency was tagged by Musk in his Twitter bio. It is necessary to note that the comment made by billionaire and CEO of Tesla had a ripple effect on the crypto world. It was said that at around 8:30 UTC, bitcoin picked up a bid near 32,000 dollars and spiked to 37,050 dollars, which is its highest level since January 2019. The 15.7 percent rise took place in less than 15 minutes and reversed the early dip from 34,400 dollars to 32,000 dollars.

While some still believe that the exact reason for the bullish move cannot easily be defined, it is necessary to understand that the prices surged after Elon Musk, Tesla, and SpaceX CEO made changes to his Twitter bio, mentioning the cryptocurrency. Though the Bitcoin community is keen for Musk to declare his support, Tesla CEO, however, enjoys dropping crypto mentions as a tease form.

Why Bitcoin Price Soars After Elon Musk Namecheck

As earlier stated, there was a surge in the price of bitcoin after Tesla chief of Staff Elon Musk added the name of the cryptocurrency in his Twitter biography. Though Elon Musk simply wrote a single word "bitcoin" on the social media site in his biography, the world's biggest cryptocurrency saw a massive surge in minutes.

The billionaire entrepreneur and Tesla CEO is followed by over 43.8 million followers on Twitter and is known for making market-moving remarks on the site. A similar occurrence happened to Gamestop after the tweet “Gamestonk” by Musk Last year bitcoin spiked over 300 percent as larger corporations and US investors sought exposure to the cryptocurrency. Also, in December, Musk made enquires about if it were possible to convert large transactions of Tesla's balance sheet into bitcoin.

However, there is a limit to even Tesla CEO's power, as bitcoin gave back every gain for almost a 20 percent pump that coincided with the commotion as regards the tech mogul's Twitter account. As earlier stated, a social media frenzy was generated over the change made by Tesla CEO to his Twitter account biography. BTC, coinciding with the uproar, spiked in a couple of hours from around 32,200 dollars to 38,000 dollars

Several hours after the spike, the world's leading cryptocurrency, bitcoin, began to drop, and by Friday evening, it had already dropped to 34,000 dollars. This continued throughout the weekend as bitcoin continued to trade below 35,000 dollars, and on Sunday, it dropped even further. On Coindesk, Bitcoin is currently trading at 32,821 dollars, which is a little bit higher than its 24-hour low of 32 229 dollars.

The future of bitcoin remains uncertain as everyone keeps giving their opinion on what bitcoin is most likely going to trade by in years to come. The Tesla CEO's declaration of support might have attributed for its price surge, but it can also be seen that it didn't stay on that high pedestal for long as it dropped again. The price of bitcoin has always fluctuated over the years, some crypto trading experts believe that these price fluctuations might affect bitcoin in more years to come and eventually the price might continue to drop, while others believe that the fluctuations will not be enough to slow it down as the world's largest cryptocurrency might likely break 50,000 dollars in 2021which would make it the highest by far that any cryptocurrency has attained.

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