Bitcoin jumped as much as 14% on Friday to a two-week high after Tesla Inc chief Elon Musk tagged the cryptocurrency in his Twitter biography.

Musk simply wrote "#bitcoin" in his biography on the microblogging site.

The cryptocurrency was trading at $37,800 as of 0936 GMT.

It's not quite apparent what the material difference is between Elon Musk having bitcoin in his Twitter bio and not having it there, according to Neil Wilson, chief market analyst at Markets.com.

"Does this mean he's buying? Or does he simply think it's a good thing," he wrote in a note, adding that Musk's record on Twitter with Tesla shares is "chequered."

"Clearly the move is being cheered by the Bitcoin bulls," he said, and called the market's feverish trading around hot securities like Bitcoin and GameStop "risky."

He also noted that "assets that can be moved this easily by social media, whether Twitter or Reddit, are liable for large intra-day moves and subsequently could be too hot to handle for many. It's getting wild out there."

The billionaire entrepreneur, followed by 43.7 million on Twitter, has a record of making market-moving comments on the site.

GameStop Corp, which has been at the centre of retail trading frenzy, surged 50% on Tuesday after Musk tweeted "Gamestonk!!", along with a link to the Reddit Wallstreetbets stock trading discussion group.

There, supporters affectionately refer to him as "Papa Musk." "Stonks" is a tongue-in-cheek term for stocks widely used on social media.

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.

Later in January, the tech mogul and currently the world's richest person tweeted two simple words from his Twitter account to his 42 million followers. "Use Signal."

What Musk referred to was the messaging app 'Signal' as an alternative to WhatsApp which has recently come under controversy for its change in privacy rules sparking concerns.

What investors, however, mistook it for the stock share of a company called 'Signal Advance Inc.' and invested in it. According to Bloomberg, by the end of the day, Signal Advance Inc. shares had surged more than sixfold. That was enough to push Signal Advance's rally more than 5,100% in three trading days giving it a market valuation of $390 million.