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Elon Musk is the latest Bitcoin bull

Photo of: Joseph Stone
by Joseph Stone

Is it possible to talk about a Musk effect, like the Dogecoin? The BTC symbol appeared on the Twitter profile of entrepreneur and billionaire Elon Musk. The result: a meteoric rise in the value of cryptocurrencies.

It’s not sure yet that this trend is likely to reassure institutional investors. This sudden volatility of Bitcoin is certainly not a favorable factor in the quest for more stability. In the space of a few minutes, Bitcoin flew away by more than 5,000 dollars.

And the cause of this upward volatility? The appearance of the BTC symbol on the Twitter page of a renowned influencer and entrepreneur: Elon Musk. For Cointelegraph Markets and Tradingview, it is indeed this change that would explain the sudden surge of Bitcoin.

This is not the first time, however, that a billionaire has influenced the price of a cryptocurrency in this way. The previous episode of this kind occurred only a few weeks ago. In tweets, Tesla’s boss mentioned Dogecoin which led to impressive gains.

But no more than with the DOGE, Elon Musk provides no explanation for this mention of Bitcoin in his Twitter profile to nearly 44 million subscribers. Previously, the boss had introduced himself as the former CEO of Dogecoin.

Does Musk have any interest in Bitcoin or cryptocurrencies in general? As is often the case on Twitter, the billionaire evades answers and favors encrypted messages. So he doesn’t say here whether he owns BTC or not.

This simple mention in his profile would be enough to raise the value of the queen of cryptocurrencies. If Musk is indeed the first lever of this sudden surge in the price, it is not encouraging for investors.

Such a hypothesis would tend to confirm the opinion of Blackrock’s CEO, Larry Fink. Bitcoin “is very volatile, moving in 5-6% increments with small dollar investments that make it move,” he said this week.

One reason for this is the “small size” of the current market. However, this factor is a source of volatility, which in turn slows down the institutional investors’ willingness to invest. And this is even more true for an asset claiming the status of a value reserve.

For Larry Fink, this claim remains to be proven. According to him, “it has not yet been tested. And the same goes for its durability. “Its long-term viability has not yet been proven,” he says.