Bitcoin climbs to 38,000 US dollars after Musk tweet

5,000 in 5 minutes – Bitcoin climbs to 38,000 US dollars after Musk tweet

Bitcoin (BTC) has climbed US$5,000 in just a few minutes today, 29 January, after „the world’s richest man“ wrote in the cryptocurrency’s Twitter status.

As data from Cointelegraph Markets and Tradingview shows, Bitcoin has risen to US$38,000 after Elon Musk began publicly „promoting“ the market-leading cryptocurrency.

Accordingly, the sudden surge is probably based on the hope that Bitcoin will be the next financial product to benefit from the Profit Revolution current hype on social media. This was kicked off by the Reddit sub-forum r/Wallstreetbets, which has caused turmoil in the stock market.

Elon Musk had joined this hype by lifting the „joke cryptocurrency“ Dogecoin (DOGE) to a new record high with just a few tweets.

DOGE, along with stocks GameSpot and AMC, meanwhile all surged thanks to Reddit this month, with the ensuing regulatory retaliation causing uproar and increasing cryptocurrency’s reputation as an independent investment.

Prior to the DOGE, retail investors had initially pounced on GameSpot and AMC shares, catapulting the former in particular to astronomical heights. This in turn triggered a cascade on the stock market, in which American politicians have now also become involved. Against this backdrop, decentralised and independent cryptocurrencies are becoming increasingly attractive.

„This should be the wake-up call for you to finally pull your #Bitcoin from crypto exchanges,“ as the Twitter account Documenting Bitcoin warns, as trading of the GameStop stock has since been halted on some trading platforms. A similar scenario could theoretically loom on centralised crypto exchanges.

Musk fuels speculation

Musk, who once described himself as the „former CEO of Dogecoin“, has not yet revealed why he is promoting Bitcoin in his Twitter status. He merely put out a cryptic tweet following this:

„Was obvious this would happen,“ the Tesla boss said.

In the past, Musk has been very ambiguous about the market-leading cryptocurrency, which is why it is difficult to assess whether his „advocacy“ is really meant seriously.

However, Bitcoin is not riding quite as strong gains as GameStop and Dogecoin today (Friday), as it retreated back below US$37,000 shortly after jumping US$5,000. Nonetheless, the crypto industry is overjoyed that Musk seems to have taken a liking to the market leader.

„We’ve got him“, as Robert Breedlove, the author of „Thank God for Bitcoin“, puts it.

Abra CEO Bill Barhydt adds, alluding to SpaceX, the rocket maker also run by Musk:

„Elon has discovered space currency. Fasten your seatbelts.“