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Cryptocurrency has been one of the most trending topics in the past few months. Especially, bitcoin has gone through some massive price fluctuations, which different factors have triggered. One of the primary reasons behind all the ups and down in the crypto market is Elon Musk. Elon Musk has been fluctuating the prices of bitcoin through his tweets, and you can read below to learn more about the whole matter.
Who is Elon Musk?
You have heard about one of the world’s biggest electric vehicle manufacturers, Tesla. Elon Musk is the CEO and founder of Tesla. He is also one of the richest persons in the world and has excellent intelligence and skills. Now, if we talk about his presence on social media, he is quite active on the social network. His Twitter account has over 47 million followers, and his single tweet is seen by millions of people and gain a lot of attention.
Elon is also an immensely influential personality, and he had proven it in the last few months when he turned the bitcoin market upside down only with a few tweets. He also tweeted about some other cryptocurrencies such as Dogecoin, and whichever cryptocurrency he mentioned in his tweet either went up or went down. Read more if you want to master bitcoin trading.
How Musk affected the cryptocurrency market?
Bitcoin is the world’s most valuable and biggest cryptocurrency, and Tesla’s boss has been able to play with its market price through his Twitter handle. Bitcoin was once the most expensive cryptocurrency globally, and everyone thought that nothing would be able to collapse the bitcoin market. But Elon Musk turned the impossible into possible and became one of the primary reasons behind the bitcoin market crash in April 2021.
It all started in January 2020 when Elon Musk changed his Twitter bitcoin into ‘#bitcoin.’ This change in his bio shot up the price of bitcoin from $32000 to $38000. Over 20000 Bitcoin trades were made every hour after Musk changed his bio. Before the big change, the average traded per hour was 5000. It is clearly evident how Elon Musk fluctuates the bitcoin market through his Twitter.
Taking Dogecoin to new heights
Elon Musk displayed the power of his tweet once again in January when he posted an image of Dogecoin. It could not bring any immediate change in the market as his bio change did, but after few hours of him posting the picture, the price of Dogecoin increased four times. One of the most impactful tweets he made was on December 20, 2020, when he tweeted one word; Dogecoin. Normally, the trading volume of Dogecoin at that time was $1942 in one minute, but after Musk’s tweets, it rose to $299,330, and the number of trades per minute increased to 775.
Elon helped bitcoin reach its all-time high
Almost everyone knows that Bitcoin touched its all-time high price, $60000 in mid-April, and the reason behind it is none other than Elon Musk. In February 2021, Elon Musk announced that his company purchased bitcoins for $1.5 billion and is all set to accept bitcoin payments and allow the users to purchase cars using bitcoins. After this announcement came out, the prices of bitcoin started climbing up, and it touched the magic mark of $60000. But soon after that, Elon Musk took a U-turn and made another tweet that Tesla has decided to stop accepting bitcoin payments.
He said that bitcoin mining has a huge adverse impact on the environment, which is why he is no longer supporting bitcoins. After he posted this tweet, the crypto world went crazy, and bitcoin’s value started decreasing. Thus, the same person who took bitcoin to its peak price became the reason for its downfall. After he tweeted about him reversing the decision, bitcoin’s price dropped by 15%. It made bitcoin reach its lowest price since February 2021. In May, Elon Musk again tweeted and ensured that Tesla had not sold its bitcoin holdings, which halted the dropping price and made it stable at $45000.
A week after that, Elon Musk again tweeted and said that he had a meeting with the bitcoin miners in North America. They are working on minimizing the environmental damage caused by bitcoin mining. It gave some hope to the bitcoin investors, and bitcoin’s price again increased by 4 percent. Unfortunately, musk didn’t stop even after that, as he again posted a meme on June 3, which indicated his breakup with bitcoin. It again has an impact on the market, and bitcoin’s price fell by 5%.
How do Musk’s tweets play with the crypto world?
Bitcoin is not the only cryptocurrency that has been affected by the tweets posted by Elon Musk. He has tweeted several cryptocurrencies, and each one of them got drastically affected by his tweets. For example, in May, Elon tweeted about the meme cryptocurrency known as ‘dogecoin.’ No one even knew about this cryptocurrency. Still, after Musk tweeted that he has been working with the development of Dogecoin to improve its efficiency and operations, the price of Dogecoin raised drastically.
Musk’s company SpaceX announced that it would be accepting Dogecoin as a payment method, and it is also building a cube satellite which they have named DOGE-1 and are also planning to send it to the moon. All of these updated tweets from Elon Musk’s side created a huge hype about Dogecoin in the market and made it the most trending cryptocurrency.
Why Elon Musk’s tweets are so influential?
There are numerous popular personalities on Twitter, but no one’s tweets have so much power as musks have. The biggest question is why Elon’s tweets are so influential that they can bring some massive changes in the prices of cryptocurrencies such as bitcoin. He is one of the richest persons globally, and everyone tries to follow his investment decisions so that they can also earn massive profits like him. So it is the primary reason that any tweet related to cryptocurrency made by Musk inspires a lot of investors.
Thank you for reading!