The speculative frenzy that took over a large number of retail shares of dying companies spread to the digital currency world on Friday, and Bitcoin rose as much as 16 percent.
The digital testimony was recovered overnight after Elon Musk left the word “# Bitcoin” in the description of his Twitter account and that daily traders face restrictions on making transactions with some of their favorite stocks.
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Elon Musk wrote the word Bitcoin in the description of his Twitter account.
Earlier this month, the digital currency had plummeted from a record at a time when daily traders were looking for higher returns on stocks like GameStop Corp., Which caught the attention of members on the RedSit WallStreetBets forum.
Digital currency is no stranger to the attacks of speculative mania. It closed 2020 with a 200% rise in three months as Wall Street showed greater interest in it. But this move paled in comparison to the returns seen by the WSB crowd, where daily traders focused heavily on short-term stocks and used options to generate gains in excess of 900% in some cases.
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On Thursday, this outrage caught the attention of Washington and regulators, leading online brokers to restrict trading in certain stocks and options.
Robinhood Markets, the broker that the no-commission trading structure was introduced that encouraged the retail scene, demands higher margins to trade some of the most popular stocks and on Friday limited Bitcoin transactions and other digital tokens that had joined the party.
This did little to dampen demand for an asset that has long been the favorite of the crowd operating online. Musk’s Twitter page simply said # Bitcoin without further explanation, but lto speculation that the richest man in the world could be an investor in Bitcoin was enough to trigger the dramatic rebound.
Prices soared in minutes, the biggest intraday move in nearly a year. “This big merger is due to Elon’s tweet,” said Antoni Trenchev, managing partner and co-founder of Nexe in London, which self-proclaims itself as the world’s largest cryptocurrency bank.
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Musk’s support for Bitcoin “creates a safe zone for some of the smaller companies and possibly all in the S&P 500 to allocate funds to Bitcoin“, He said.
Musk also tweeted an image from the cover of the magazine Doge, A reference in the fashion magazine Vogue. He also sent messages calling Cyberpunk a great video game and said, “In retrospect, it was inevitable.”
Binance, the world’s largest digital currency exchange by volume, briefly suspended recessions on Friday to address a large increase in applications.
Executive Director Changpeng Zhao said user records and operations increased to an all-time high. Coinbase, the largest exchange of digital assets in the United States, said it was investigating delays in deposits and withdrawals.
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Traders trying to read Musk’s tweets between the lines interpreted his cryptic messages as support for Bitcoin and dogecoin, a digital currency originally created as a joke.
Dogecoin prices soared on Friday, up 300% in the last 24 hours to $ 0.04355, according to CoinMarketCap data. Digital currency-related stocks also rose.
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