Bitcoin Stock Dramatically Increases After Elon Musk Shows Support for the Cryptocurrency
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The cost of Bitcoin surged last week after the CEO of SpaceX, Elon Musk, showed his support of the cryptocurrency on Twitter.
Musk changed his Twitter bio to “#bitcoin “including a B symbol and caused a dramatic increase.
In August of last year, the price of cryptocurrency sat at 11,768.87, since then though it has more than tripled in price.. As of Jan. 29, the cost of the cryptocurrency sits at 35,310.88.
Pawen Dhokal, a new investor, purchased Bitcoin shares through Robinhood in December after hearing more about the stock market from one of his chiropractic clients.
“I pulled it out of there [Bitcoin] actually a couple days ago, to put it into Dogecoin, some of it, and then just diversified some of that $3,000, but that’s kind of what I was starting with for the year and at one point that three turned into over $4,000,” Dhokal told Scriberr.
Dhokal tried investing more into Dogecoin, but Robinhood did not allow him to.
“Earlier today I went to reinvest in it [Dogecoin] when the price dropped again, my principal plus my profit, and it would only let me deposit my profit,” Dhokal said. “So now I can only reinvest the, the profits of it which is okay, but, you know it’s limiting what I can do in the app and it’s limiting the game.”
Other cryptocurrencies like Dogecoin have seen increases in prices as well.
This comes only days after Musk stirred up a frenzy over GameStop and caused a 50% increase in their stock.
Musk tweeted, “gamestonk!!” adding a link to the Reddit page, wallstreetbets.
In December, Musk was curious about Tesla converting billions of dollars to Bitcoin to get a larger return.
Since the surge in Bitcoin, Robinhood sent another announcement to its users about limiting the purchases of skyrocketing stocks.
The investment app allows whole share purchases, but only if users already have the funds in their Robinhood account. These new limitations mean Robinhood users cannot transfer additional funds from their bank accounts.
Robinhood is also limiting the number of shares and options contracts users can have. Some companies have over 1000 shares available per user, but others like GameStop (GME) only allow two shares per user.
“You will not be able to open more positions of each of these securities unless you sell enough of your holdings such that you are below the respective limit,” the announcement said.