Is Elon Musk still that influential in the crypto world?
Kevin Kang, co-founder of BKCoin Capital, proved a point when he said that Elon Musk is “definitely too influential on Bitcoin prices’’. This assertion comes after Musk, at the beginning of June, wrote a cryptic tweet that many people interpreted as a sign of an imminent break-up between him and Bitcoin. In fact, the tweet depicted the Bitcoin logo and a broken-heart emoji.
Shortly after the tweet, Bitcoin prices went down by over 4%, and the value of Dogecoin was down 2.5%. This proves that Kevin Kang was right; Elon Musk seems to be too influential on Bitcoin prices.
When did Musk start influencing the crypto markets?
When Musk started being interested in the crypto world, the market was already experiencing steady growth. After Covid-19 crisis, several other markets were heavily (damaged). Traders and investors started panic selling and prices in general began to rise. Bitcoin’s value rose as well, specifically through the bullrun of 2020. Elon Musk noticed that sharp increase, and started posting tweets about Bitcoin, eventually adding the Bitcoin logo on his Twitter Bio. This was around the end of January 2021.
It goes without saying that, after Elon Musk tweeted his appreciation for the cryptocurrency, people were in a hurry to purchase the cryptocoin! Thousands of newbies decided to invest according to Elon’s tweets. The media all around the world promoted this chain of events and spread alarming and sensationalistic information. However, Bitcoin’s prices were having a double-digit growth at the time.
All of a sudden, Elon decided to distance himself from Bitcoin. He claimed in another tweet that Bitcoin was not an eco-friendly currency. The crypto’s value plunged in a fortnight. On another occasion, Musk tweeted that he was supporting Dogecoin developers to improve system transaction efficiency. As a result, Dogecoin’s price went up 39.4% at 54 cents per coin. This proves how influential the CEO of Tesla can be for the markets.
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