'Next' GameStop Faces Virtual Asset... 800% Surge and Trading Suspension Chaos
Dogecoin Surges Due to Musk's Tweet
Following GameStop, Retail Investors Boost Cryptocurrency
Bitcoin Also Soars
Robinhood Restricts Cryptocurrency Purchases
[Asia Economy New York=Correspondent Baek Jong-min] The surge in stock prices driven by individual investors that began with GameStop has spread to the virtual asset market.
According to CNBC on the 29th (local time), Dogecoin, a type of virtual asset, experienced a phenomenal 800% surge that day.
According to CNBC, this Dogecoin surge was led by the online community 'SatoshiStreetBets' on Reddit. Satoshi is the name of Satoshi Nakamoto, who is known to have created Bitcoin.
A day earlier, a post titled "Dogecoin is the next Bitcoin" was uploaded on SatoshiStreetBets, which led to supporters emerging and subsequently the price of Dogecoin began to soar.
The person who ignited the rise of Dogecoin was Elon Musk, CEO of Tesla. He posted a photo on his Twitter that appeared to support Dogecoin.
Regarding Musk’s tweet, a user of 'SatoshiStreetBets' wrote, "Musk is with us."
Due to the Dogecoin surge, the stock trading app Robinhood temporarily suspended virtual asset trading. Robinhood stated, "Due to extreme volatility, we temporarily restricted purchases of virtual assets." Robinhood allowed purchases of virtual assets only within the funds already deposited. Robinhood had halted investors' GameStop purchases a day earlier but lifted the restriction on this day.
On the same day, Bitcoin’s price also surged by 20%, reaching $38,566.
Bitcoin had recently plummeted to the $29,000 range following regulatory remarks by Janet Yellen, U.S. Treasury Secretary, and had been hovering in the low $30,000 range.
The rise in Bitcoin’s price that day was also influenced by CEO Musk writing "Bitcoin" in his Twitter profile, according to U.S. media analysis.
CNBC reported that expectations that CEO Musk had purchased Bitcoin led to a rush of investments in Bitcoin.
Musk has recently mentioned stocks such as GameStop, CD Projekt, and Etsy on Twitter, causing their stock prices to surge.
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CNBC also introduced that experts’ voices are growing louder, calling for regulation as CEO Musk continues to have a significant impact on asset markets.
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