Bitcoin is printing fresh all-time highs with its market cap well-above the $1 trillion mark and the asset may have billionaire tech entrepreneur Elon Musk to thank.
In a new set of tweets, the Tesla chief executive responds to a Bloomberg interview of Binance CEO Changpeng Zhao to explain why the electric car company decided to add Bitcoin to its corporate treasury.
“Tesla’s action is not directly reflective of my opinion. Having some Bitcoin, which is simply a less dumb form of liquidity than cash, is adventurous enough for an S&P500 company.
To be clear, I am *not* an investor, I am an engineer. I don’t even own any publicly traded stock besides Tesla. However, when fiat currency has negative real interest, only a fool wouldn’t look elsewhere. Bitcoin is almost as bs as fiat money. The keyword is ‘almost.'”
The SpaceX head also changed his Twitter avatar into a Bitcoin anime “just for a day.”
Just for a day
— Elon Musk (@elonmusk) February 19, 2021
Following Musk’s latest Bitcoin antics, the largest cryptocurrency broke out of consolidation around $50,000 en route to a new all-time high of $56,412 and a market capitalization of over $1.05 trillion, according to CoinMarketCap.
According to a study from Blockchain Research Lab (BRL), Musk’s activity on Twitter can have an immediate and significant impact on BTC’s performance. Last month, when the billionaire entrepreneur changed his Twitter bio to “#Bitcoin,” the price of the flagship cryptocurrency promptly skyrocketed from $32,119 to $38,415, which resulted in a spike of cumulative abnormal return(CAR) of 18.99% within 7 hours.
Earlier this month, Musk sent shockwaves throughout the cryptoverse after revealing that Tesla purchased $1.5 billion worth of Bitcoin.Don't Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox
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