How Much Weight Does the Elon Musk’s Endorsement of Bitcoin Carry?

Godfrey  |  Feb 3, 2021

The first month of 2021 recorded significant milestones for Bitcoin (BTC), the first acclaimed cryptocurrency, in the consolidation of the bullish way it ended 2020. Amongst the milestone on record is the attainment of an all-time high (ATH) above $42,000, and the consolidation of its price levels above $30,000 for the longest time in history.

Bitcoin fought the fight to be recognized not just as a revolutionary digital currency over the years, but as an asset with more inherent value than what the majority of fiat currencies can boast of. The fight took a new turn last year with the embrace of digital currency by a hoard of institutional investors.

With prominent names like Michael Saylor, Tyler Winklevoss, Peter McCormack amongst the backers of the revolutionary cryptocurrency, the price of Bitcoin appears to have peaked at its ATH, and perhaps begging the embrace or endorsement of another, more conservative investor - a role which Elon Musk appears to have embraced

Elon Musk’s Influence Over Bitcoin

Elon Musk is an industrial gem with a couple of unique technology-based inventions that have been commercialized to date. The inventor has always been a lover of cryptocurrency innovations and prominently known to be a lover of Dogecoin (DOGE), the digital currency that was created as early as 2013 but as a joke based on the Shiba Inu dog meme.

Elon Musk plunged Bitcoin Twitter into a huge frenzy following the revelation that was heralded by Elon Musk’s updated Twitter status featuring ‘#Bitcoin’. Elon Musk finally broke the silence on his position with Bitcoin and his thoughts about the future prospects of the asset to bring the desired change.

"I do at this point think bitcoin is a good thing," Musk told a packed Clubhouse chat room, adding he doesn't "have a strong opinion on other cryptocurrencies.” He also disclosed that he is “a supporter of bitcoin. I am late to the party but a supporter. I think bitcoin is on the verge of getting broad acceptance by conventional finance people."

The words of Elon Musk rebounded the price of Bitcoin up on Friday by more than 18% rising to over $38,000 in anticipation that the coin will touch and surpass its new all-time high price.

But Was the Influence Sustaining?

Elon Musk sparked momentum in the price of Bitcoin was quick to lose its steam as prices retraced back to $32,000. It is not surprising that over 44.7 million Twitter followers of the CEO have amassed were unable to influence the price of the asset as many people believe more in actions beyond words.

Take MicroStrategy's CEO Michael Saylor for example, his aggressive advocacy about Bitcoin is duly backed by the buy-up of Bitcoin both by his firm, through investors funds, and himself. Elon Musk’s backing of Bitcoin may stir a massive frenzy on the exchanges if the Tesla boss can come out to declare a new massive purchase of Bitcoin. That way, many will know that Bitcoin’s value is appreciated by Wall Street’s top firms. Any rally that development will spark is likely to see more success than the short-lived surge Bitcoin saw in the past few days.

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