Today was a wild day for the cryptocurrency market after Dogecoin had a massive 1,000% breakout thanks to the WallStreetBets subreddit. This group has been notorious for making ‘YOLO’ bets on stocks and recently made a group effort to boost the price of GameStop’s stock as a big hedge fund had shorted it significantly.
After the massive pump on DogeCoin, no other than Elon Musk changed his bio on Twitter to just one word, #Bitcoin. He followed it up by adding the next tweet, which is a bit cryptic but clearly talks about Bitcoin.
In retrospect, it was inevitable
— Elon Musk (@elonmusk) January 29, 2021
Bitcoin Price explosion didn’t last long
Although Bitcoin price had a massive 30% spike, most of it is gone at this point. The digital asset touched $38,531 before quickly coming down to the current price of $36,600. It seems that Elon Musk didn’t have enough power to create a sustained move for Bitcoin.
BTC/USD daily chart – TradingView
Before the artificial pump, Bitcoin was in the middle of a consolidation period down to $30,000. At this point, it’s extremely hard to determine where BTC is going next and investors should be extremely careful while trading it.
Just hours ago, The Indian Parliament announced that they are considering a bill to ban all private cryptocurrencies besides the official digital asset of the country issued by the Reserve Bank of India (RBI)
Ethereum price holds a crucial support level
Most of the market simply followed Bitcoin’s path today. Ethereum had a smaller but still significant 10% boost towards $1,429 but it’s currently only trading at $1,329. Despite the recent sell-off, on the 4-hour chart, ETH bulls have just defended the 26-EMA again and aim to continue with the uptrend disregarding the recent pump and dump created by Musk.
ETH/USD 4-hour chart – TradingView
XRP price is the biggest gainer today
Although the initial 22% spike of XRP was lower than Bitcoin’s boost, the digital asset hasn’t dropped as hard and it’s currently trading at $0.281 still around 8% higher than when it started.
XRP/USD 4-hour chart – TradingVIew
Either way, this most recent spike will probably not change much for XRP, not even in the short-term as Ripple is still investigated for selling XRP as illegal securities.
