Bitcoin jumps 7% after Elon Musk posts an image of a crypto-themed ring and makes a vague reference to dogecoin
Photo illustration by Chesnot/Getty Images
Bitcoin spiked 7% on Thursday after Elon Musk’s consistent tweets about the asset continued.
The billionaire also made a reference to dogecoin, the meme-based crypto that’s soared this year.
Announcements from Mastercard and Bank of New York Mellon also further boosted its price.
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The price of bitcoin rose by as much as 7% on Thursday after Elon Musk posted a vague tweet with a reference to dogecoin and an image of a crypto-themed ring.
The digital asset rose by $4,000 to trade around $48,000 at 9:40 a.m. ET, after it was stuck around $43,800 the previous day.
In his tweet, Musk said: “Frodo was the underdoge, All thought he would fail, Himself most of all,” seemingly in a reference to the Lord of the Rings trilogy. Dogecoin saw only a 0.8% jump to $0.07, but it’s still up 1300% year-to-date.
@elonmusk/Twitter
Read more: A Ruffer portfolio manager invested a portion of his $4.8 billion fund in Bitcoin. Here’s what swayed him to bet on crypto - and the 2 other ways he’s hedging against worrying speculative bubbles
Its price was further boosted by positive announcements from other big corporations. Mastercard said it would open its network to some cryptocurrencies later this year and Bank of New York Mellon announced it will start transacting bitcoin for its clients.
Earlier this week, the token got its biggest endorsement after Tesla disclosed a $1.5 billion bitcoin investment. That pushed bitcoin’s price to its record high of $48,000.
“These are just the early innings of corporate adoption, as digital currencies are beginning to play a larger role in robust balance sheet management,” said Nathan Cox, chief investment officer at investment firm Two Prime.
One analyst said Tesla’s decision was a massive win for the crypto crowd and acceptance within the financial community is what it has long sought - and this move ticks both of those boxes.
“It seems that one thing more powerful than Elon Musk’s Twitter account is the financial power of the company he co-founded and leads,” said Craig Erlam, senior market analyst at OANDA. “I’m a little surprised it wasn’t enough to push $50,000 if I’m honest, but it’s surely only a matter of time. There doesn’t appear to be much appetite to sell at this point.”
Read More: UBS says bitcoin is a bubble and too volatile to diversify a portfolio, unlike gold - here’s why the bank says it could end up ‘worthless’
MasterCard plans to follow PayPal with crypto receipts for merchants, Cardano launching Native Tokens - CityAM
Crypto at a Glance
The markets slowed yesterday, with Bitcoin and Ethereum both seeing small retraces after hitting new all-time highs earlier in the week. The rumour mill continues to grind though, with new reports quoting a ‘source familiar matter’ that MasterCard is planning to give merchants the option to receive payments in cryptocurrency later this year. The question is, will it stop people HODLing and get them to start spending their crypto?
It was a similar story across the board yesterday, with minor losses or minor gains for the majority. The story of the moment continues to be Cardano, which is now up more than 100% in the last 10 days alone. The rise follows last week’s upgrade of the platform’s ‘native tokens’ testnet – (read today’s Crypto AM: Conversation with James Bowater) the first step towards allowing full multi-asset support and enabling the use of cryptocurrencies from other blockchains on Cardano, and the creation of their own tokens, similar to functionality offered by Ethereum. Cardano has already announced a partnership with AI and blockchain giant, Singularity.net. Is this rise just the beginning?
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The Bitcoin Economy
*Definitions and insights can be found at https://bytetree.com/insights/
What bitcoin did yesterday
We closed yesterday, 10 February, 2021, at a price of $44,918.18 – down from $46,481.10 the day before.
The daily high yesterday was $47,145.57 and the daily low was $43,881.15.
This time last year, the price of bitcoin closed the day at $9,856.61. In 2019, it was $3,690.19.
As of today, buying bitcoin has been profitable for…
99.9% of all days since 2013-04-28.
Bitcoin market capitalisation
Bitcoin’s market capitalisation is currently $831,896,263,974. down from $862,486,778,655 yesterday. That keeps Bitcoin in ninth spot on the list of largest assets in the world, above Facebook and Tesla. Gold’s market cap is $11.705 trillion, so there’s still a good amount of growth.
Bitcoin volume
The volume traded over the last 24 hours was $83,742,305,480, down from $86,190,254,134 yesterday. High volumes can indicate that a significant price movement has stronger support and is more likely to be sustained.
Volatility
The price volatility of bitcoin over the last 30 days is 92.88%.
Fear and Greed Index
Market sentiment remains high, in Extreme Greed at 93.
Bitcoin’s market dominance
Bitcoin’s market dominance is currently 61.61. Its lowest ever recorded dominance was 37.09 on 8 January, 2018.
Relative Strength Index (RSI)
The daily RSI is currently 69.57. Values of 70 or above indicate that an asset is becoming overbought and may be primed for a trend reversal or experience a correction in price – an RSI reading of 30 or below indicates an oversold or undervalued condition.
Convince your Nan: Soundbite of the day
–
What they said yesterday…
% Increase over last year…
Ethereum: +683%
Bitcoin: +363%
Lumber: +115%
Soybeans: +59%
Silver: +55%
Copper: +46%
Corn: +45%
Cotton: +30%
Coffee: +25%
S&P 500: +20%
Gold: +17%
Crude Oil: +16%
Wheat: +16%
US Home Prices: +10%
—
US Consumer Price Index (reported today): +1.4% — Charlie Bilello (@charliebilello) February 10, 2021
ICMI: This week @singularity_net announced that one billion new AGI tokens will be created on the Cardano blockchain.
This will be the first major token release on the Cardano Native Assets platform and is “the largest democratic exercise in the history of decentralized AI”! pic.twitter.com/q0R9BzM1lg — IOHK Media (@IOHKMedia) February 10, 2021
Bought some Dogecoin for lil X, so he can be a toddler hodler — Elon Musk (@elonmusk) February 10, 2021
Mike strikes again.
“Only buy something that you’d be perfectly happy to hold if the market shuts down for ten years.” – Warren Buffett on #Bitcoin — Michael Saylor (@michael_saylor) February 10, 2021
Gene’s been into bitcoin all nite.
Bitcoin @bitcoin I bought seven figure months ago. It’s been very good to me. Do I believe it’s going even higher than the recent record breaking surges? You bet! — Gene Simmons (@genesimmons) February 10, 2021
First Musk, then Simmons, then Lohan! It never rains but it pours.
bitcoin to the moon 🚀 — Lindsay Lohan (@lindsaylohan) February 10, 2021
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Crypto AM: Recommended Events
CC Forum
Global Investment in Sustainable Development
3 – 4 March 2021 – Dubai
Global Technology Governance Summit
6 – 7 April 2021 – Tokyo
https://www.weforum.org/events/global-technology-governance-summit-2021
Cautionary Notes
It’s definitely tempting to get swept up in the excitement, but please heed these words of caution: Do your own research, only invest what you can afford, and make good decisions. The indicators contained in this article will hopefully help in this. Remember though, the content of this article is for information purposes only and is not investment advice or any form of recommendation or invitation. City AM, Crypto AM and Luno always advise you to obtain your own independent financial advice before investing or trading in cryptocurrency.
All information is correct as of 08:30am GMT.
Crypto AM Daily in association with Luno
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