Elon Musk's Support for #Bitcoin and GameStop Incident

Twitter CEO Jack Dorsey, Reddit co-founder Alexis Ohanian, and crypto trader Scott Melker are among those joining Elon Musk.

Tesla CEO said "In retrospect, this was inevitable."

Bitcoin surged early on Friday after Elon Musk tagged the cryptocurrency in his Twitter bio. After the CEO of Tesla (TSLA) moved to support the cryptocurrency, the Bitcoin price increased by 12.3 percent compared to CoinDesk prices, reaching $ 37,351. The move is the latest example of how the collision of financial markets and social media can trigger dramatic price changes and even volatility. Others, including Twitter's CEO Jack Dorsey and Reddit co-founder Alexis Ohanian, backed up the situation by updating their bio.

Musk's update posted over a weekend when the value of GameStop stocks rose by over 1,600 percent.

GameStop Incident

The moves, directed collectively by retail investors to brokerage applications such as Robinhood, aimed to increase the open positions held by hedge funds. Investors organized themselves on the Reddit forum on WallStreetBets and exchanged ideas on how to get stocks fast. Neil Wilson, chief analyst at Markets.com, said, "This week, with the full public release of the Reddit incident, Elon Musk was included in the power of social media to drive markets. Tesla CEO tweeted" Gamestonk !! "and tagged WallStreetBets Reddit on this link. As a result, caused an increase in GME share prices. '' Wilson stated that it is not clear why Musk made the move to support Bitcoin. Does that mean he bought it? Or does he think it's just a good thing? “We shouldn't forget that Musk gave mixed signals on Twitter. However, the move is applauded by Bitcoin bulls. " Scott Melker, a crypto trader nicknamed The Wolf of All Streets, likewise tweeted, "Seeing # bitcoin in @ elonmusk's biography is a nice page to wake up to." https://twitter.com/scottmelker/status/1355103484102791168?s=20   Wilson said that Musk's tweet clearly demonstrated that he supports the cryptocurrency in some way. He later added, "Entities that are easily influenced by social media, whether on Twitter or Reddit, are responsible for major intraday movements. Subsequently, it can be very difficult for many to deal with. The environment is getting increasingly crazy." Source: https://www.fnlondon.com/ You may also be interested in:

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