The speculative frenzy that has gripped a slew of retail stocks of dying companies spread to the crypto world on Friday, with bitcoin surging as much as 16 percent.
The digital token recovered overnight after Elon Musk left the word “#bitcoin” in his Twitter account description. and that day, traders will be faced with restrictions to trade some of their favorite stocks.
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Elon Musk wrote the word bitcoin in the description of his Twitter account.
Earlier this month The cryptocurrency had fallen from an all-time high as daily traders sought greater returns on stocks such as GameStop Corp.., which caught the attention of members on Reddit’s WallStreetBets forum.
Cryptocurrency is no stranger to the bouts of speculative mania. It ended 2020 at 200% in three months as Wall Street showed more interest in it. But that move paled in comparison to the returns of the WSB audience, where day traders focused heavily on short stocks and used options to make more than 900% profits in some cases.
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On Thursday, that furor caught the attention of Washington and regulators, leading online brokerages to restrict trading in certain stocks and options.
Robinhood Markets, the broker introduced the commission-free trading structure that livened up the retail scene, demanding higher margins to trade some of the hottest stocks, and limited bitcoin transactions on Friday and other digital tokens that had joined the party.
That did little to diminish the demand for an asset that has long been a public favorite online. Musk’s Twitter page simply said #bitcoin without further explanation, but he didspeculation that the world’s richest man could be a Bitcoin investor was enough to spark the dramatic rally.
Prices soared within minutes, the largest intraday movement in nearly a year. “This great merger is thanks to Elon’s tweet,” said Antoni Trenchev, managing partner and co-founder of Nexo in London, which bills itself as the world’s largest crypto bank.
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Musk’s support for bitcoin “creates a safe zone for some of the smaller companies and possibly everyone in the S&P 500 to fund bitcoinsaid.
Musk also tweeted a photo of the magazine cover. Dogue, a reference to the fashion magazine Fashion. He also sent messages calling Cyberpunk a great video game and saying, “In retrospect, it was inevitable.”
Binance, the world’s largest cryptocurrency exchange by volume, briefly suspended withdrawals on Friday to deal with a major spike in requests.
CEO Changpeng Zhao said user registrations and activity are at an all-time high. Coinbase, the largest digital asset exchange in the United States, said it was investigating delays in deposits and withdrawals.
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Traders trying to read between the lines of Musk’s tweets interpreted his cryptic messages as endorsing bitcoin and dogecoin, a digital currency originally created as a joke.
Dogecoin’s prices rose higher on Friday, by 300% in the past 24 hours to $ 0.04355, according to data from CoinMarketCap. Cryptocurrency-related stocks also rose.
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