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The price of bitcoin rose by 3% on Thursday after Elon Musk posted a vague tweet with a reference to dogecoin and an image of a cryptographically themed ring.
The digital asset rose $ 2,000 to trade around $ 46,102.22 at 10:55 GMT, after being stuck around $ 43,800 the day before.
In his tweet, Musk said, “Frodo was the underdog, everyone thought he would fail, himself above all,” apparently in a reference to the Lord of the Rings trilogy. Dogecoin had a jump of just 0.8% for US $ 0.07, but it’s still 1300% for the year.
@ elonmusk / Twitter
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Earlier this week, the token got its biggest endorsement after Tesla released a $ 1.5 billion investment in bitcoin. This pushed the price of bitcoin to a record $ 48,000.
“These are just the first entries in corporate adoption, as digital currencies are starting to play a bigger role in robust balance sheet management,” said Nathan Cox, investment director at investment firm Two Prime.
One analyst said Tesla’s decision was a massive victory for the cryptocurrency crowd and acceptance within the financial community is what it has long been looking for – and that measure suits both boxes.
“It seems that something 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 wasn’t enough to push $ 50,000 to be honest, but it’s certainly just a matter of time. There doesn’t seem to be much of an appetite to sell at this point.”
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