Bitcoin surged as much as 14% on Friday to a two-week high after Tesla CEO Elon Musk tagged the cryptocurrency in his Twitter biography.
Musk simply added “#bitcoin” in his biography on the social media site.
The cryptocurrency was trading at $37 800 as of 11.36am South African time.
Musk’s page on Twitter simply said #bitcoin with no further explanation, but speculation that the world’s richest man might be a Bitcoin investor was enough to set off a dramatic rally.
Prices spiked as much as 15% in a matter of minutes, the biggest intraday move in almost a year.
Bitcoin pared gains later in the London trading day.
The cryptocurrency was up 9% to $36 197 as of 10:22 a.m. local time, after jumping as high as $38 089.
“Obviously this huge melt-up is due to Elon’s tweet,” said Antoni Trenchev, managing partner and co-founder of Nexo in London, which bills itself as the world’s biggest crypto lender.
Musk’s support for Bitcoin “creates a safe zone for some of the smaller companies and possibly everyone in the S&P 500 to allocate into Bitcoin,” he said.
Traders trying to read between the lines of Musk’s tweets interpreted his cryptic messages as support for Bitcoin and Dogecoin, a digital coin originally created as a joke.
Dogecoin prices skyrocketed higher on Friday, jumping about 300% in the last 24 hours to $0.04355, according to CoinMarketCap data.
It’s not the first time Musk has hinted at crypto assets.
Earlier this month, he agreed with a post referencing being paid in Bitcoin, and when someone asked if he owned any Dogecoin, he replied:
“No, but maybe one day.”
In December, Musk asked about the possibility of converting “large transactions” of Tesla’s balance sheet into bitcoin in a Twitter exchange with a well-known advocate for the digital currency.