Photo illustration by Chesnot / Getty Images
The price of bitcoin rose by as much as 7% on Thursday after Elon Musk vae twiet with a reference to dogecoin and an image of a crypto-themed ring.
The digital asset rose $ 4,000 to trade at about $ 48,000 at 09:40 ET, after hitting about $ 43,800 the previous day.
In his tweet, Musk said: “Frodo was the underdog, all thoughts that he would fail, himself most of all,” apparently in a reference to the Lord of the Rings trilogy. Dogecoin jumped only 0.8% to $ 0.07, but it is still 1300% higher than the previous year.
@ elonmusk / Twitter
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The price was further increased by positive announcements from other large corporations. Mastercard has said it will open its network to some cryptocurrencies later this year, and the Bank of New York Mellon has announced it will start trading bitcoin for its customers.
Earlier this week, the award received its biggest approval after Tesla announced a $ 1.5 billion bitcoin investment. This pushed the price of bitcoin to its record high of $ 48,000.
“This is just the early turn of corporate adoption as digital currencies begin to play a greater role in strong balance sheet management,” said Nathan Cox, chief investment officer of investment firm Two Prime.
One analyst said that Tesla’s decision was a major victory for the crypto crowd, and that acceptance within the financial community had long been sought – and this move marks both the boxes.
“One thing seems 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 that it was not enough to push $ 50,000 if I’m honest, but it’s probably just a matter of time. . “
Read more: UBS says bitcoin is a bubble and too volatile to diversify a portfolio, as opposed to gold – which is why the bank says it could be ‘worthless’.