Elon Musks tweets cause significant movement in the cryptocurrency markets

Elon Musk’s concise messages regarding cryptocurrencies have resulted in significant gains for Bitcoin, Dogecoin, and SHIBA INU on multiple occasions. Can you recall how many?

Twitter, still universally known as “X,” has established itself as a vital social network within the crypto community. In addition to facilitating interactions between early adopters, it has also helped Bitcoin and Ether gain mainstream recognition. It’s not unusual for a crypto term to trend on the platform, and currently, there’s a lot of buzz surrounding #HAMSTERKOMBAT.

Spaces has become a popular forum for in-depth discussions about the industry’s underlying values, attracting prominent figures in the process. However, there have been instances when posts (or tweets, as they are commonly referred to) had a sudden and significant impact on the crypto markets, and not always for the better.

Unsurprisingly, most of these influential posts came from one person: Elon Musk. He used to avidly discuss digital assets on Twitter before eventually acquiring the platform. Bitomat recently conducted research on the tweets that had the most impact, providing a fascinating overview of cryptocurrencies’ wild journey so far. It’s remarkable how three simple words can make such a profound difference.

For example, in December 2020, Musk’s tweet about Dogecoin, which was then a relatively obscure memecoin, caused its value to double to $0.004. This marked the beginning of an incredible bull run for DOGE, with its price eventually peaking at $0.7376. Interestingly, Musk’s remark calling it a “hustle” on Saturday Night Live coincided with DOGE reaching its peak. Those who invested in this altcoin after Musk’s post would have made a remarkable profit of $184 for every $1 invested. To this day, DOGE remains one of the largest cryptocurrencies by market capitalization.

While not a tweet, Musk’s addition of #bitcoin to his bio on Twitter in January 2021 had a significant impact on the value of the world’s biggest cryptocurrency. Bitcoin’s price surged from $32,000 to over $38,000 within a few hours, representing an almost 20% increase. Such substantial and sudden jumps in value are rare these days. However, just as Bitcoin’s volatility works both ways, so do Musk’s posts.

Musk spooked the markets when he announced that Tesla would no longer accept Bitcoin due to concerns about its energy consumption and carbon emissions. This led to a 19% drop in BTC’s value, from $58,000 to $47,000. Nonetheless, Musk remained one of DOGE’s strongest supporters in 2021. In February of that year, his tweet caused another 50% increase in DOGE’s value, from $0.04 to $0.06, and received 100,000 retweets. How many individuals discovered Dogecoin for the first time through that post?

At times, Musk’s influence on the markets has been quite unpredictable. The success of Dogecoin resulted in the creation of numerous smaller memecoins, including Shiba Inu, the breed of dog that inspired the original Doge. With just five words and a hashtag, SHIB’s value tripled. Today, it remains the 11th-largest cryptocurrency globally, with a market capitalization that surpasses that of some established companies.

In December 2021, Musk’s post alone caused DOGE to rally by 43%, as he announced that Tesla would accept it as a payment method, adding a previously absent layer of utility. Two months later, Mark Cuban praised DOGE’s low transaction fees in a tweet, resulting in a 78% increase in its value. All of these tweets occurred within a four-week period and played a significant role in DOGE’s unlikely rally to a market cap that temporarily surpassed that of some of the world’s oldest banks. Each tweet delivered double-digit gains, with “no highs, no lows, only Doge” performing exceptionally well and securing a 50% increase.

However, as the saying goes, all good things must come to an end. DOGE is currently trading at 82% below its all-time high set in May 2021 and has failed to gain momentum during the current bull run. Furthermore, Musk’s posts have had lasting consequences, as a group of investors filed a staggering $258 billion lawsuit against him, accusing him of using his position as the world’s richest man to operate and manipulate the Dogecoin pyramid scheme. Musk’s lawyers are currently fighting to have the lawsuit dismissed.

In conclusion, Elon Musk’s concise posts on Twitter have had a significant impact on the crypto markets, resulting in double-digit gains for Bitcoin, Dogecoin, and SHIBA INU on multiple occasions. These posts have not only influenced the value of these cryptocurrencies but have also attracted attention to the industry as a whole. However, Musk’s tweets have sometimes caused unpredictable market movements and have faced legal repercussions.