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As the man himself said, it was inevitable.
Tesla CEO Elon Musk changed his Twitter bio to “#bitcoin” on Friday. That alone might not be so interesting – after all, Musk has expressed interest in Bitcoin and cryptocurrencies before – but Musk followed up with a cryptic tweet that could indicate that he actually bought Bitcoin.
“In retrospect, it was inevitable,” Musk tweeted.
It could mean anything and nothing. It could be related to DOGE, a cryptocurrency joke that Musk is a fan of and recently was. tweet on. Or it could be related to something unrelated to crypto.
However, cryptocurrency Twitter immediately began speculating on Musk’s purchase of Bitcoin, or even Tesla to invest some of its cash stack in the cryptocurrency. Software company MicroStrategy has invested a huge amount of money in Bitcoin in recent months, and its CEO Michael Saylor has been vocal about Bitcoin being a better alternative to cash for a company’s reserves.
Yes. I bought over $ 1.3 billion in #BTC over the past few months and would be happy to share my playbook with you offline – from rocket scientist to rocket scientist.
– Michael Saylor (@michael_saylor) December 20, 2020
In December, Saylor actually offered Musk – via Twitter – advice on how to buy large amounts of Bitcoin on behalf of a business.
At this point, we don’t know exactly what Musk referred to in his last tweet, or whether he or Tesla owns, or plans to own, a Bitcoin. But that hasn’t stopped speculators from pushing the price of Bitcoin up 19% in less than an hour, from around $ 32,000 to just under $ 38,000. The pump has now gone down and the price is around $ 36,000.
On top of that, be aware that the announcement came immediately after the biggest options expiration in bitcoin history, not giving traders much of a chance to reestablish their long exposure or close their short hedges. The shorts have just been taken for a wild ride.
– Alex Krüger (@krugermacro) January 29, 2021
Musk’s tweet came at an extremely volatile and frankly, just plain odd time for the financial markets. First of all, he came after a expiration of major options for Bitcoin, which no doubt facilitated the price movement in both directions.
Additionally, Musk’s comments came amid a trade war between a group of Reddit traders and massive hedge funds, which pushed the price of GameStop stock to all-time highs. The battle still rages on, with volatility forcing some trading platforms, including Robinhood, to temporarily halt the purchase of GameStop and several other stocks.
Musk is no stranger to the havoc in the financial markets. His infamous “take Tesla private” tweet sent the company’s shares up, putting Musk in trouble with the US Securities and Exchange Commission.
Disclosure: The author of this text owns, or has recently owned, a number of cryptocurrencies, including BTC and ETH.
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