How Elon Musk Pumped Bitcoin to $38K

Tesla CEO Elon Musk has changed his Twitter bio to just one word. And this word is "Bitcoin". Not a surprise that in a few minutes the price of digital coin surged around $6000.

A few minutes later he also tweeted that “in retrospect, it was inevitable.” But what is amazing about it is that Bitcoin`s price skyrocketed and still holds its mark of $37,630 at the moment of writing this article.

Interesting, but a small change in Tesla CEO`s bio in Twitter cost BTC traders more than $420 million. According to data from analytics site Bybt, 62% of all traders were “short” before Musk`s update. It is worth noting that Elon Musk`s has 43.9 million strong Twitter followers. The change in his bio caused Bitcoin’s prices to rise in just 15 minutes from the $32K mark to over $35K and to $38K by now.

Much Losses Anyway

Unfortunately, not everyone has managed to make money even though the prices were high. Traders who went “short” Bitcoin before the update lost some capital.  In the meantime, $120 million in long positions was liquidated too, probably because of the price volatility.

But the worst situation was on crypto exchange Binance. Traders lost more than $103 million in shorts since the time Tesla CEO changed his bio, while $57 million just in the first ten minutes.

Joseph Young, analyst, and investor tweeted earlier today:

“Bitcoin surged 14% in 30 minutes.

I think this has to be the biggest 30-minute upsurge in history.

And with that, we have a short-term $BTC trend reversal to the upside.

- Elon tweet

- Options expiry

- Robinhood users

It is a perfect storm in hindsight. (1/2)”

So, the Bitcoin trend saw some bearish mood lately, but has completely changed in just 30 minutes after the bio update. It happened to be at the same period of time together with giant options expiry for BTC, one to the number of billions of dollars which some suspected could make a negative impact on Bitcoin price.

Didn't Elon Musk save the day?