The speculative frenzy that has plagued a series of retail stocks of dying companies spread to the crypto world on Friday, with bitcoin rising to 16 percent.
The digital token recovered overnight after Elon Musk left the word “#bitcoin” in the description of his Twitter account. and on that day traders will face restrictions on trading some of their preferred shares.
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Elon Musk wrote the word bitcoin in the description of his Twitter account.
Earlier this month Cryptocurrency fell from a record high as daily traders sought higher returns on stocks such as GameStop Corp., which caught the attention of Reddit members on the WallStreetBets forum.
Cryptocurrency is no stranger to the attacks of speculative mania. It closed 2020 with 200% in three months as Wall Street showed greater interest in it. But this move has faded compared to the returns seen by the WSB crowd, where day traders have focused heavily on short stocks and used options to generate profits in excess of 900% in some cases.
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On Thursday, the anger drew the attention of Washington and regulators, prompting online brokerages to restrict trading in certain stocks and options.
Robinhood Markets, the broker that introduced the no-fee trading structure that enlivened the retail scene, calls for higher margins for trading some of the hottest stocks and limited bitcoin transactions on Friday and other digital tokens that joined the party.
This has done little to diminish the demand for an asset that has long been a favorite online crowd. Musk’s Twitter page simply said #bitcoin without further explanation, but he didspeculation that the richest man in the world could be a Bitcoin investor was enough to trigger the dramatic rally.
Prices rose in minutes, the biggest intraday move in almost a year. “This big merger is due to Elon’s tweet,” said Antoni Trenchev, general partner and co-founder of Nexo in London, which is considered 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 for everyone in the S&P 500 to fund bitcoin“, said.
Musk also posted a picture on the cover of the magazine on Twitter. Doge, a reference to 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 cryptocurrency exchange, in volume, briefly suspended withdrawals on Friday to address a significant increase in demand.
CEO Changpeng Zhao said user registrations and operations have grown to a historic level. Coinbase, the largest digital asset exchange in the United States, said it is investigating deposit and withdrawal delays.
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Traders trying to read between Musk’s tweets have interpreted his cryptic messages as a support for bitcoin and dogecoin, a digital currency originally created as a joke.
Dogecoin prices rose Friday, up 300% in the last 24 hours to $ 0.04355, according to CoinMarketCap. Actions related to cryptocurrencies have also increased.
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