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Bitcoin’s price jumped a whopping 6% on Thursday after Elon Musk released a vague tweet with a reference to dogecoin and an image of a crypto-themed ring.
The digital asset was up $ 3,000 and traded around $ 47,516 around 9:20 a.m.ET after trailing around $ 43,800 the previous day.
In his tweet, Musk said, “Frodo was the underdoge. All thought he would fail it himself,” seemingly in reference to the Lord of the Rings trilogy. Dogecoin saw only a 0.8% jump to $ 0.07, but it’s still up 1,300% since the start of the year.
@ elonmusk / Twitter
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Earlier this week, the token received its largest approval after Tesla revealed a $ 1.5 billion bitcoin investment. That pushed the price of bitcoin to an all-time high of USD 48,000.
“These are just the first steps in corporate adoption as digital currencies begin to play a greater role in robust balance sheet management,” said Nathan Cox, chief investment officer at investment firm Two Prime.
One analyst said Tesla’s decision was a huge win for the crypto crowd and acceptance within the financial community is what it has long sought – and this move ticks both boxes.
“It seems one thing is more powerful than Elon Musk’s Twitter account is the financial strength of the company he co-founded and leads,” said Craig Erlam, senior market analyst at OANDA. “I’m a little surprised that it wasn’t enough to push $ 50,000 if I’m honest, but it’s certainly only a matter of time. There doesn’t seem to be a lot of selling point right now.”
Read more: UBS says bitcoin is a bubble and too volatile to diversify a portfolio, unlike gold – here’s why the bank says it could become ‘worthless’