Bitcoin price surged by over $5,000 in minutes on Friday after Tesla and SpaceX CEO Elon Musk added its symbol to his Twitter page.
January 29, 2021 | AtoZ Markets – The premier cryptocurrency, Bitcoin (BTC) witnessed a sudden double-digit spike to 10-day highs on January 29. BTC picked up a bid near $32,000 at around 08:30 GMT and rallied to $38,217 on Bitstamp exchange, the highest level since January 19.
The 15.7% rise happened in less than 15 minutes and more than reversed the early dip from $34,400 to $32,000.
Will the Bitcoin rally continue?
While the exact reason for the bullish move is hard to define, prices surged after the world’s richest man Elon Musk changed his Twitter bio to mention the cryptocurrency. While the Bitcoin community is keen for Musk to come out as a supporter, he seemingly enjoys dropping crypto mentions as something of a tease.
Around the time he changed the bio, Musk also tweeted:
In retrospect, it was inevitable— Elon Musk (@elonmusk) January 29, 2021
Whether Bitcoin’s rise will continue isn’t certain. Blockchain analytics firm CryptoQuant’s “Exchange Whale Ratio,” calculated by dividing the top 10 bitcoin inflow transactions in an hour by total exchange inflows, jumped to an eight-month high of 0.88 early Friday, warning of a possible price drop.
However, “Elon’s tweet overrides all other bearish signals,” Ki-Young Ju, CEO of blockchain analytics firm CryptoQuant tweeted.
The latest price rise marks an upward break of the recent $30,000 to $35,000 trading range. As such, more chart-driven buying may be seen. The cryptocurrency is currently trading near $36,575.
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