On January 29, American entrepreneur Elon Musk posted on Twitter a message 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 inflow of new users was recorded on the Binance cryptocurrency exchange. Because of this, the site even suspended the withdrawal of funds for a short period of time.
Note that Elon Musk’s message was not the only catalyst for the growth of the rate of the first cryptocurrency – on January 29, there was also the expiration date of options for bitcoin in the amount of $ 3.2 billion.
“Immediately after expiration, bitcoin rose by $ 5,000. The reason was either the expiration itself or Musk’s tweet,” said Luuk Strijers, COO of Deribit cryptocurrency derivatives exchange.
According to cryptocurrency broker FalconX, it was retail investors who caused the price of bitcoin to rise. So, during the growth of the rate, the volume of trading with bitcoin on the part of hedge funds decreased by 45%, but retail investors immediately increased trading 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 Investors at FalconX.
As a reminder, this week, users of the Reddit forum “broke up” the share price of the GameStop network, so that institutional traders take losses. Against this background, interest in the cryptocurrency industry has also increased.
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