A tweet by Elon Musk related to Bitcoin while not directly mentioning it is making users suspicious.
What does the future hodl?
— Elon Musk (@elonmusk) April 24, 2021
The phrase transforms the word hold into hodl. The most famous typo in the cryptocurrency industry refers to the practice of buying and holding crypto while waiting for its value to soar.
Combining this wordplay with Elon Musk has led to more than a few speculations about its meaning.
Some have seen in it the possible announcement of new investments by Tesla in Bitcoin. It would not be the first time this has happened: a tweet by the CEO followed by an official announcement about Bitcoin has already occurred in the past.
For others, the tweet anticipates the release of Tesla’s quarterly report, the first after the announcement of the Bitcoin investment. With the price of BTC rising from $30,000 to $65,000, Tesla’s investment has effectively doubled. For those well-versed in the matter, Tesla stands to gain more from investing in Bitcoin than from selling electric cars.
In this sense, the term “hodl” could indicate the company’s willingness to continue to hold Bitcoin and, who knows, to purchase more.
The market reaction to Elon Musk’s tweet about Bitcoin
Usually, the market tends to react with strong moves to Elon Musk’s tweets, usually to the upside. However, the tweet is dated April 24th and over the weekend Bitcoin struggled to maintain the $50,000 mark. Whereas today, with the start of the new week, the price seems to have shifted into high gear and, according to CoinMarketCap, it gained 7% and returned close to $54,000.
In contrast, Elon Musk’s favourite crypto, Dogecoin, is still struggling. DOGE, after last week’s rally, is not following the rest of the sector and appears to be struggling, with the price just below parity in a market that is practically all in the green. However, this performance does not detract from the excellent performance of recent weeks, when DOGE’s price hit unthinkable records.
Perhaps a few encouraging tweets from Tesla’s CEO will be good for Dogecoin too.