Tesla chief executive Elon Musk has done it once more. The billionaire, whose tweets were blamed for causing the price of bitcoin to nosedive earlier this year, drove cryptocurrency prices again on Friday.
The global crypto market cap gained 5.52% in one day to $1.28 trillion, following Musk’s sentiment booster.
The ‘magic’ in Elon’s words
Musk announced in a video conference Thursday that his company would “most likely” go back to receiving bitcoin as payment once it administers fair diligence on the amount of renewable energy used to mine the currency.
Following this announcement, all the major cryptocurrencies showed strong signs of recovery. With Uniswap in the lead gaining up to 13%.
Musk’s words still carry a great impact on the crypto world. Bitcoin prices leaped after he acknowledged that he pumps but does not dump cryptocurrencies.
As a result of Musk’s recognition, the price of ethereum also rose by 6.3% from its morning valuation, and the price of dogecoin improved by almost 11% to trade at $0.2101.
The much-needed lift
On Tuesday, bitcoin dropped below $30,000, raising investor jitters the crypto market would experience an extended slump. However, Musk’s backing of the crypto market allayed the fears of the investors.
Musk said during the discussion that bitcoin has “a lot of potential.” However, he ruled out the possibility of the cryptocurrency’s base layer becoming a medium of exchange.
Musk also said at the conference that ethereum had the potential to scale and become a universal monetary system. The billionaire’s interest in cryptocurrencies extends beyond bitcoin. Remember he’s the “Dogefather”, too. And there are rumors about a brewing Doge-Ether collaboration.
Image courtesy of Cointelegraph News/YouTube
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