Elon Musk has once again impacted the price of Bitcoin after declaring himself a supporter of the largest cryptocurrency.
Speaking on the Clubhouse app, the billionaire said at this point that he believes "Bitcoin is great," adding that he was "late to the party" and should have bought the cryptocurrency eight years ago.
The digital currency hit $34,500 on Monday and then fell again. It rose as much as 16% on Jan. 29 to $38,000 after Musk updated his Twitter profile information to include “#bitcoin.”
Cryptocurrencies have been hit recently by volatile retail-investor demand shaped online by Twitter feeds and Redditforums. Dogecoin — a Shiba Inu-themed digital currency that started as a joke — reached the top ten cryptocurrencies last week before its price plunged over the weekend.
On Clubhouse, Musk said he doesn't have a good opinion of other cryptocurrencies and that his comments about Dogecoin are funny, adding that "the most ironic outcome would be Dogecoin becoming the global currency in the future."
Bitcoin has fallen about $8,000 from the price it reached in early January – $42,000, but remains up over 260% over the past year.
“Bitcoin is truly on the verge of widespread adoption,” Musk said in Clubhouse.
Others see some more immediate risks for Bitcoin, whose latest price explosion is reminiscent of the bubble that occurred in 2017.
Information source: bloomberg.com
