Elon Musk changed his Twitter bio to one word: Bitcoin.
The billionaire businessman, whose stance on the benchmark cryptocurrency has juggled skepticism and praise, appears to have taken a final stand on the matter. In a tweet that followed shortly after the bio’s update, Musk said that “in hindsight, it was inevitable.”
This was enough for the Bitcoin bulls to take control of a short term bear market. Musk’s tweet prompted them to increase their bids for the cryptocurrency. As a result, in just two hours, the cost of buying a Bitcoin went from almost $ 32,000 to over $ 38,000.
Looking back, it was inevitable
– Elon Musk (@elonmusk) January 29, 2021
Bitcoin on Tesla’s balance sheet?
Musk’s cryptic tweet and biography sparked theories about the possibility of his companies Tesla and SpaceX adding Bitcoin to their balance sheets. Meanwhile, many have taken it as an outdoor advertisement for the world’s largest cryptocurrency with Musk’s 43.8 million subscribers, many of which include notable crypto-skeptics like Nouriel Roubini and Peter Schiff.
“The point is, we don’t know if Elon Musk adding Bitcoin to your bio does mean something, ”warned Alex Krúger, an independent market analyst.
“We have to wait for this. However, everyone is now thinking about adding Tesla Bitcoin to your balance. Which would be huge. The only possibility is enough to make the market roar.
Bitcoin tends to respond positively to high-profile mentions. Recently, JPMorgan’s $ 100,000 Bitcoin price prediction last year pushed the price of the cryptocurrency above $ 35,000 for the first time in history. Likewise, PayPal’s decision to add Bitcoin services helped it break through its previous record high of $ 20,000, which had remained unreachable since December 2017.
Bitcoin breaks above the 20-day moving average to signal an extended bullish bias. Source: BTCUSD on TradingView.com
But Musk’s tweet also came at a time when his so-called favorite cryptocurrency, Dogecoin, was on the downside after climbing 1,100% in just two days. It’s hard to assume if Musk is trolling or promoting Bitcoin, in part because Dogecoin is a joke cryptocurrency.
Either way, the flagship cryptocurrency was able to break its two-week downward bias with Friday’s rally. The wild bullish move also helped it break through its 20-day moving average, indicating a prolonged bullish move in the sessions to come.