Cryptocurrency news

Elon Musk's tweet Sparked an influx of retail Investors into the cryptocurrency industry

Elon Musk’s tweet Sparked an influx of retail Investors into the cryptocurrency industry

American entrepreneur Elon Musk (Elon Musk) on January 29, published a message on Twitter with the text “it was inevitable” regarding bitcoin, which attracted the attention of the whole world to the cryptocurrency.

As a result of the publication of the tweet, the rate of the first cryptocurrency jumped from $32,000 to $37,000 in a few minutes, and a record influx of new users was recorded on the Binance cryptocurrency exchange. Because of this, the platform even suspended the withdrawal of funds for a short period of time.

Note that the message of Elon Musk was not the only catalyst for the growth of the first cryptocurrency-January 29 was also the expiration date of bitcoin options in the amount of $ 3.2 billion.

“Immediately after the expiration, bitcoin rose by $5,000. The reason was either the expiration itself, or Musk’s tweet, ” said Luuk Strijers, Chief operating Officer of the Deribit cryptocurrency derivatives exchange.

According to the cryptocurrency broker FalconX, it was retail investors who caused the price of bitcoin to rise. So, during the growth of the exchange rate, trading volumes with bitcoin from hedge funds decreased by 45%, but retail investors increased trading immediately by 1,100%.

“I think there is a correlation with the Wall Street Bets community on the Reddit forum. Moreover, the trading volumes were made by users from the United States, ” said Aya Kantorovich, head of Institutional Investor Relations at FalconX.

Recall that this week, users of the Reddit forum “dispersed” the stock price of the GameStop network, so that institutional traders received losses. Against this background, interest in the cryptocurrency industry has also increased.