Crypto Market Volatility Upended After Elon Musk’s Bitcoin Tweet

After all the high-voltage drama unfolding on Wall Street with the GameStop (NYSE: GME) stock, a similar turn of events took place at the Satoshi Streets with ‘buy DogeCoin’ trending.

Crypto market volatility was upended this week due to a strong comeback, surging nearly 10% and adding $100 billion to the crypto market cap in just a few hours. Thanks to Elon Musk’s ‘#bitcoin’ tweet that has pushed the market into a wild frenzy. But before we go there, let’s see what’s the major buzz in the crypto space currently.

Exactly similar to GameStop, a Reddit community r/SatoshiStreetBets appeared for the meme cryptocurrency spreading the word ‘Buy DogeCoin’ like a wildfire. The result is that DogeCoin (DOGE) has skyrocketed 500% in less than 48% hours thereby putting it among the top ten cryptocurrencies by market cap.

At press time, the meme cryptocurrency DogeCoin is trading at $0.050 with a market cap of $6.6 billion. Interestingly, on Friday, January 29, the DOGE price surged 800% all the way up to $0.074 before finally cooling down.

Also, it has happened for the very first time that the Twitter search volumes for any crypto surpassed Bitcoin on a 24-hour chart. The DogeCoin tweets were up 1700% to near 90,000 tweets in just a matter of 24 hours.

The DogeCoin price rally happens despite the Robinhood app restricting DogeCoin trading on Thursday. Robinhood has been at the center of the entire GameStop controversy and on Friday it also started restricting crypto trading citing ‘extraordinary market conditions’.

In an email to CNBC, a Robinhood spokesperson wrote: Due to extraordinary market conditions, weve temporarily turned off Instant buying power for crypto. Customers can still use settled funds to buy crypto. Well keep monitoring market conditions and communicating with our customers.”

Bitcoin (BTC) Price SkyRockets After Elon Musk’s Tweet

Soon after Elon Musk’s tweet on Friday, January 30, the BTC price skyrocketed a whopping 20% moving past $38,000 levels in a matter of just a few minutes. Elon Musk changed his Twitter bio to ‘#bitcoin’ while adding that ‘it was inevitable’.

This was enough to create a huge buzz in the overall crypto space. Along with Bitcoin(BTC), the entire altcoin space has also rallied heavily taking the overall crypto market cap once again above $1.01 trillion.

However, after the Musk pump, the BTC price has retraced back 10% from Friday’s high of $38,650. At press time, BTC is trading at a price of $34,160 with a market cap of $630 billion.

Interestingly, despite the strong BTC pullback, altcoins have been holding their positions firm with Ethereum (ETH) continue staying above $1350 levels.

Crypto Market Volatility
Courtesy of Santiment

Elon Musk’s tweet has certainly helped Bitcoin to break past its consolidation phase, however, it seems like big payers and investors have once again resolved to profit booking. Looking at the current trend, it difficult to do any price analysis on how Bitcoin (BTC) can react in the near time.

Ethereum (ETH) Leading the Altcoin Space Rally

The world’s second-largest cryptocurrency Ethereum has been leading the rally in the altcoin market. Following the Bitcoin (BTC) pump, the ETH price also skyrocketed above $1400 levels. ETH has been largely following the BTC price movement and is currently trading 2.45% up at $1383 with a market cap of $158 billion.

As per the Glassnode data, the ETH percentage of addresses in profit has hit a new 3-year high of 98.94%.

Crypto Market Volatility
Courtesy of Glassnode

However, another recent data from on-chain data provider Santiment goes to show that a large number of ETH has been moving off the exchanges and into cold wallets.

Crypto Market Volatility
Courtesy of Santiment

Crypto Picks for the Week

Well now coming back to the crypto picks for the week, we have picked some lesser-known altcoins that investors must be keeping their eyes on.

  1. THORChain (RUNE) has registered a solid price so far in 2021. The RUNE cryptocurrency has surged more than 50% over the last week and over 200% year-to-date. At press time, RUNE is trading 15% up at $3.72 with a market cap of %578 million.

    The major surge comes as RUNE makes an entry in the DeFi space with THORChain launching its Ethereum-based version of RUNE on SushiSwap.
  2. The Ethereum-based on-chain peer-to-peer options trading protocol Hegic is also making waves in the market. Hegic is slowly gaining popularity in crypto DeFi as an automated market maker (AMM) for options.

    Besides, investors are activating HEGIC tokens and activating a staking lot that gives investors the right to receive staking rewards. So far in 2021, HEGIC token price has jumped 150%. At press time, HEGIC is trading at a price of $0.31 with a market cap of $102 million.
  3. Decentralized autonomous DAO Badger is another crypto pick. Badger builds products and infrastructure required to accelerate Bitcoin as collateral across different blockchains. Badger DAO price has surged nearly 300% year-to-date in 2021. At press time, Badger DAO is trading at $27.28 with a market cap of $63 million.
XRP and DOGE Tank After Wild Pump