Elon Musk is the only person who has built sufficient power to impact markets with a single tweet. The celebrity CEO, who has over 55 million followers on Twitter, 'practically' rattles the market every time he tweets about cryptocurrencies. The billionaire and Tesla CEO have also been tweeting a lot about cryptocurrency, pushing the price of bitcoin and dogecoin up and down in less than 280 characters. His tweets also raise concerns about the stability of a market that is so quickly affected, especially as retail investors rush to cryptocurrencies in greater numbers.
How Elon Musk's comments have influenced the bitcoin market in the last month:
June 3: He shared a meme about breaking up with bitcoin on June 3. Since then, the price of bitcoin has dropped 5%, marking the latest in Musk's month-long rout of the cryptocurrency.
May 25: Musk appeared to try to address the problem of bitcoin's environmental impact a week later, calling the intention of North American bitcoin miners to reveal renewable consumption "quite encouraging." The price increased by 4% as a result.
Spoke with North American Bitcoin miners. They committed to publish current & planned renewable usage & to ask miners WW to do so. Potentially promising.— Elon Musk (@elonmusk) May 24, 2021
On May 17: Musk remarked May 17 that Tesla hasn't sold bitcoin in a while, which seemed to stem the decline and keep prices around $45,000.
Hey Elon,— Emperor👑 (@EmperorBTC) May 16, 2021
Can you please post a screenshot of WHAT you replied to? Everyone has @CryptoWhale blocked.
For context, you replied TO a Scammer who ran away with Life savings of 200 innocent people.
Not that you knew, just helping a brother out.
May 16: When Elon Musk posted in response to an unverified Twitter account named @CryptoWhale, which wrote, "Bitcoiners are going to smack themselves next quarter when they find out Tesla liquidated the rest of their #Bitcoin holdings," Bitcoin plummeted from a high of $65,000 to below $45,000 levels. I wouldn't blame him, given the amount of vitriol directed at @elonmusk... That tweet made the price of bitcoin drop to its lowest level since February.
May 13: Due to environmental worries about Bitcoin mining, Musk said on May 13 that Tesla would no longer accept Bitcoin payments for its automobiles. Bitcoin plunged by around 17 percent soon after the tweet.
Tesla & Bitcoin pic.twitter.com/YSswJmVZhP— Elon Musk (@elonmusk) May 12, 2021
The value of bitcoin surged to about $38,000 from roughly $32,000 when Musk changed his Twitter bio to #bitcoin on January 29, 2021.
Musk Tweets on Dogecoin
Musk's tweets regarding dogecoin sparked a rally in the digital currency, which began as a joke on social media. According to CoinMarketCap.com, Dogecoin has risen to become the fourth-largest cryptocurrency by market capitalization.
Musk's cryptocurrency tweets aren't only about bitcoin. After tweeting that he was working with dogecoin developers to increase the currency's efficiency, the SpaceX CEO propelled dogecoin values up 30% in May.