Bitcoin seemed to be hitching a ride on Elon Musk’s rocket on Friday. The cryptoasset was up 20% to $ 38,000, as the richest man in the world added #bitcoin on his Twitter Bio, and a record number option contracts expired. However, despite the spike, the largest crypto in the world quickly drifted back to Earth.
This wild swing ended an otherwise relatively quiet week in the cryptoasset market. Bitcoin largely drifted sideways as one report revealed that Ivy League universities have collected the cryptoasset while Stellar, EOS, and other altcoins posted double-digit gains.
Highlights of this week
- Ray Dalio joins Bitcoin
- Gamestop saga puts crypto in the spotlight
Ray Dalio joins Bitcoin
In yet another example of crypto skeptics changing their tune, billionaire Wall Street legend Ray Dalio has joined Bitcoin.
“I believe Bitcoin is a great invention,” said the former doubter in a post LinkedIn, before concluding that the cryptoasset “Looks like a long-term option on a highly unknown future.”
Dalio’s comments come in the same week as two other high-profile figures expressed their feelings. VISA CEO Alfred Kelly said the company is “uniquely positioned to make crypto assets safer, more useful and more applicable for payments,” and Billionaire Mark Cuban wrote on his personal blog that blockchain-based assets “have now become legitimate value stores.”
Gamestop saga puts crypto in the spotlight
Mayhem entered the US stock market this week when the WallStreetBets subreddit group coordinated a 700% rise in GameStop’s price, forcing hedge funds Melvin Capital to close their short position with billions in losses.
In response, many trading apps suspended the functionality – further sparking turmoil as traders sought alternative ways to buy and sell.
Industry commentators saw this as a positive omen for decentralized assets. SkyBridge Capital’s Anthony Scaramucci told Bloomberg that the saga is “more of a proof of concept that Bitcoin is going to work,” and Anthony Pompliano told CNBC the events will serve to “accelerate the digital decentralized financial system.”
The coming week
Looking ahead, the Wall Street-inspired upheaval for the crypto market could be underway. Saw crypto subreddits 500% growth in the past week, and some suggest that the new traders could look for the stop losses of hedge funds shorting Bitcoin.
On Wednesday, another potential catalyst could move the market as thousands of business leaders converge for Michael Saylor’s Bitcoin business strategy virtual summit. This is to help other companies track MicroStrategy and add Bitcoin to their balance sheet.