Elon Musk’s frequent intervention makes it shakier as if the cryptocurrency market isn’t volatile enough. The Tesla and SpaceX CEO is a pro-crypto advocate and has been tweeting Bitcoin and others for a while. But what’s intriguing is the impact of every tweet he makes on them builds or drowns the fortunes of several cryptocurrency investors. Here’s how he did it in the past;
Shaking the Community With Just a Tweet
Just as any other freedom activists, Musk has been so enthusiastic about the concept of blockchain and cryptocurrency since they offer transparency and decentralization, which in turn offer the online freedom we want. And the main element being the face of this industry is Bitcoin – a peer-to-peer decentralized cryptocurrency.
Elon Musk: Makes #Bitcoin go up 400 billion in market cap with Tesla accepting it.
Elon Musk: Makes #Bitcoin go down 100 billion in market cap with Tesla no longer accepting it.
Bitcoin Maxi’s: “So reckless. Can’t believe @elonmusk screwed $BTC like that.”
— Matt Wallace ⚠️ (@MattWallace888) May 16, 2021
Musk’s involvement in Bitcoin has drawn many investors into the cryptocurrency world, as many started believing what Musk did. Musk elevated the hype with critical announcements like his Tesla Crop as the interest sprung. Accepting Bitcoin as payments for purchasing EVs and even pouring over $1.5 billion into it.
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While these factors drove the price of Bitcoin (and closely related altcoins), he started steering the rally upside down, with few tweets again. Tesla selling a part of its Bitcoin assets to prove liquidity, and Musk later announcing Tesla stops accepting Bitcoin as payment crushed the hopes of many.
While he manipulated Bitcoin enough, what he actually played with is the Dogecoin – a meme coin catering no real value. Dogecoin was started as a joke but is now take care of by Musk and his community, who see it as the best asset to transact value and become rich overnight.
Musk’s tweets on Dogecoin shot the coin’s value to 700x in some cases and also plunged 20-30% down in just a few minutes. He even named a SpaceX mission after Dogecoin and accepted the coin as payment for internal equipment. Also, Musk is now working to help Dogecoin serve a meaningful value, at least in terms of transactions.