Tesla CEO Elon Musk changed his Twitter profile description to one word: #Bitcoin. After that, Bitcoin grew by 20% and returned to $ 37,000.
On the morning of January 29, Bitcoin traded at $ 32,000 and began to rise sharply around noon, breaking the $ 37,000 mark. According to CoinmarketCap, the price of BTC rose by more than 20% per day.
“Looking back, it was inevitable.”
However, the action of the “Musk factor” may be short-term. CryptoQuant’s whale-on-the-stock ratio jumped to an eight-month high of 0.88. The ratio is calculated by dividing the ten largest BTC transactions that enter exchanges within an hour by the total BTC inflow. This means that large holders have started putting BTC on exchanges for trading.
CryptoQuant CEO Ki-Young Ju warned that such dynamics could indicate a possible drop in the price of bitcoin. However, he wrote that “Elon Musk’s tweet overlaps all other bearish signals.” Now Bitcoin continues to trade for about $ 37,000.
Recall that in December, Elon Musk ‘s tweets caused Dogecoin to grow by 30%.