Elon Musk has the cryptocurrency market wrapped around his little finger in the early stages of 2024. Tesla and SpaceX founder Elon Musk’s single tweet about Dogecoin sent prices skyrocketing by up to 50%. For a while, the price of bitcoin seemed to be influenced by the world’s wealthiest man’s opinion.
Musk is far from the first individual who has influenced the cryptocurrency market for no obvious purpose other than to make a recommendation. From meme coins to NFTs, a large segment of the market has shown to be receptive to celebrity endorsement.
It’s difficult to quantify the precise impact of any single event on the market, but the link between the increase of Dogecoin and Musk’s praise is apparent. While other billionaires and celebrities joined the DOGE bandwagon, Musk was the most vociferous in his attempts to send the canine cryptocurrency “to the moon.”
Is Elon really that powerful over cryptocurrency prices, or is this merely an “immature reaction” from individual investors? Remember that bitcoin increased roughly 150 percent in response to favorable news over the last quarter, resulting in a massive infusion of cash.
Influence of Elon Musk
Elon Musk is thought to be the driving force behind the global rise in cryptocurrency prices. Because of a large following of his cryptic tweets on Bitcoins, Dogecoins, and even CumRocket, he is the ultimate cryptocurrency market influencer. Immediately following his popular tweets, investors see a sharp jump or decline in stock prices.
Elon Musk is rumored to have complete influence over the cryptocurrency market as well as the digital wallets of potential investors. If you are interested in learning more about crypto and start trading the same to earn a fortune for yourself, do not forget to visit this site.
Elon Musk revealed in a tweet in March 2024 that Tesla had spent US$1.5 billion in Bitcoin and that the automobile company would accept cryptocurrency payments for autos. Because he has such a large following, more new investors have been encouraged to enter the bitcoin industry. Bitcoin prices rose to $58,000 as a result of this tweet.
However, in May 2024, he tweeted once more that Tesla will not accept Bitcoin payments because of the mining process’s excessive energy consumption. Having said that, it’s been noted that Elon Musk has a tangled relationship with bitcoin. Bitcoin values plummeted to US$30,000 as a result of this heartbreaking message.
Tesla will only accept Bitcoins if crypto-miners employ 50% clean energy to safeguard the environment, he said again in June. As a result, the price of Bitcoin has risen to US$40,000.
Investors are aware that the cryptocurrency market is extremely volatile and that there is a chance of losing a significant amount of money. Is it, however, particularly volatile as a result of Elon Musk? He has a significant influence over Bitcoin, Dogecoin, and CumRocket values.
His Dogecoin tweets sparked social media memes, propelling Dogecoin to the fourth-largest cryptocurrency by market capitalization. SpaceX was in desperate need of engineers, technicians, constructors, and crucial support employees, so Elon Musk addressed them to convince them to relocate to Starbase.
Starbase Token became a prominent cryptocurrency shortly after this tweet, with a market value of around 6000 percent. He is the primary cause of the Bitcoin price crash, and he is also the one who, with just one tweet, raises the price.
Elon Musk’s Twitter actions make him the greatest cryptocurrency influencer in the world, as he can easily have a big impact on prices with a single cryptic message.
Dogecoin and Elon Musk
Dogecoin was founded in 2013 by software programmers Billy Markus and Jackson Palmer as a “fun” alternative to Bitcoin that was speedier. It began as a spoof on the plethora of fraudulent crypto coins that had sprung up at the time, and it draws its name and emblem from a Shiba Inu meme that went widespread several years ago.
Tesla CEO Elon Musk is a strong backer of Dogecoin. After a recent Twitter dispute between Musk and Binance CEO Changpeng Zhao, this became evident. Regarding the recent DOGE incident at cryptocurrency exchange Binance, the billionaire investor and creator of SpaceX expressed concern on behalf of Dogecoin holders.
There were multiple erroneous dogecoin transactions as a result of the problem, with some users reporting that their accounts were frozen. Musk also promoted Dogecoin over Ethereum, claiming that DOGE may be used to make Decentralised Finance (DeFi) more accessible to all.
DeFi systems are a blockchain-based type of finance that provides services without the use of financial intermediaries like brokerages, exchanges, or banks. Users can keep custody of Ethereum-based crypto assets on such sites.
Conclusion
Musk’s influence on prices, on the other hand, has waned over the course of the year. Is the market becoming more stable, or are market players simply tired of hearing from him? Maybe the billionaire had outstayed his welcome, or maybe the market had become more rational.
Without Musk’s regular assistance, Bitcoin was able to weather a three-month bear market during the summer and reclaim April 2024 highs this fall. DOGE had lost its luster, and “the dogefather’s” latest dogecoin-themed tweets failed to pique the market’s interest.
The popularity of social media in the crypto market is a tribute to the general lack of regulation and maturity, as well as the intrinsic liquidity of permissionless assets that are available 24 hours a day, seven days a week.
With more regulation and innovation, the market is likely to continue to develop. If this is the case, celebrity power will continue to wane, as it did with Musk. While meme coins are still popular among crypto enthusiasts, blockchain technology has shown its worth and attracted genuine investors and billions of dollars in institutional finance.
The wild west of crypto is going to stay, but perhaps we’ve seen the worst of it.
