Bitcoin's value surpasses top banks with a surge tied to ETF rumors & hitting a new address milestone. Is a new bull run starting?
Elon Musk has a tremendous influence on the crypto market. He uses his Twitter page and other channels to comment on crypto topics.
There is usually a significant impact on the prices of cryptocurrencies anytime he makes a related tweet on his page.
Positive tweets from Elon also affect the price of Bitcoin and Ethereum. Some of his crypto tweets have led to over a 10% increase in the price of Bitcoin.
Few people have enough influence to affect the crypto market significantly. However, with Musk, just a single tweet about a particular coin can cause huge waves in the crypto scene.
Many Twitter users watch for Musk’s tweets to catch any change in sentiment toward specific cryptocurrencies. When Tesla and Musk wrote about Dogecoin in the past, the coin saw up to a 50% increase in its price.
Elon also comments on cryptocurrency-related topics on other platforms. His comments have a significant impact when it comes to meme coins and non-fungible tokens. Recently, his influence in the crypto and finance scene has kept increasing.
This article will examine Elon Musk’s recent actions and how they impact the crypto scene.
Musk’s Tweets and Market Volatility
Twitter’s broad reach has been valuable in the last few years to enable Musk’s influence on cryptocurrencies. The market has experienced significant volatility due to his Twitter comments. When he talks about cryptocurrencies, there’s a good chance their price will increase or decrease. The change can be immediate or gradual.
The Tesla-Bitcoin Controversy
There are many controversies when it comes to the creator of Bitcoin. The Tesla-Bitcoin conspiracy stems from one of Musk’s tweets concerning this matter. Elon posted a meme on his Twitter account showing that Satoshi Nakamoto is derived from the names of four major companies: Samsung, Toshiba, Nakamichi, and Motorola.
He only posted the meme on his Twitter page without adding words or comments to the tweet. The intent behind the tweet could easily be interpreted as an attempt to rekindle the Satoshi Nakamoto conspiracies.
The Rise of Meme Coins and Market Speculation
During the rise of Dogecoin, Elon played a significant role. Many people started investing in the coin due to his comments on Twitter. After a while, many people began to recognize Dogecoin as a meme coin. Investors also started buying meme coins to get rich quickly.
Investing in speculative assets can be very dangerous, as you can lose everything quickly. If it works out for you, that’s great; but with almost unlimited access to these coins, you must be careful of what you buy with your money.
The Rise of Dogecoin and Elon Musk’s Role
Elon Musk was very vital to the rise of Dogecoin. Before the coin became well known, Musk was already influential in the crypto scene. The story of the cryptocurrency changed the day Musk tweeted about it. There wasn’t much written in this phenomenal tweet: just one word: DOGE.
Due to the tweet, Dogecoin saw a tremendous increase in worth and popularity. The tweet led to an immediate 20% increase in the value of the cryptocurrency. Since his first tweet about DOGE, Musk has made several more comments about it on Twitter.
Several celebrities have had significant effects on cryptocurrencies. However, Musk’s role in the rise of Dogecoin is an achievement few can match. It serves as proof of the Elon Musk crypto impact.
The SNL Effect
Another excellent example of Musk’s influence on cryptocurrencies is the effect of his appearance on “Saturday Night Live.” Musk’s appearance on SNL had a tremendous impact on the worth of Dogecoin. The billionaire made several comments as a joke about Dogecoin on the show, which led to a significant dip in the coin’s price.
During the dialogue, Musk called the popular meme coin, DOGE, a “hustle.” As the show was ongoing, the coin’s price started declining rapidly. An hour after the show began, the cryptocurrency experienced a 20% decline in price.
Due to this incident, most people refer to Dogecoin as the first meme coin. After that, Musk talked more about the coin on Twitter, which led to a new increase in the coin’s worth. Later, he announced accepting Dogecoin as a means of payment for Tesla’s vehicles.
Bitcoin and Environmental Concerns
At first, Tesla announced that they would accept Bitcoin as a means of payment for their electric cars. However, the decision was debunked by several investors of the company. The reason was that BTC has some adverse effects on the environment. Hence, the company announced that it wouldn’t accept BTC payments anymore.
Musk wrote, “Tesla has suspended vehicle purchases using Bitcoin due to climate change concerns.” The tweet triggered a big reaction, and BTC saw a 10% price decline. After saying this on Twitter, Tesla’s shares experienced a slight dip.
Elon Musk wrote on his Twitter platform, “We are concerned about the rapidly increasing use of fossil fuels for Bitcoin mining and transactions, especially coal, which has the worst emissions of any fuel.” He also said, “Cryptocurrency is a good idea… but this cannot come at great cost to the environment.”
Musk’s comments about Bitcoin led to a severe drop in the price of the world’s biggest cryptocurrency. All it took was Tesla’s decision and some comments on Musk’s Twitter page for BTC’s price to drop. Several other cryptocurrencies were also affected due to this.
The Push for Green Cryptocurrencies
Mining cryptocurrencies comes at a significant cost. They consume a lot of fossil fuel when mined. This can be detrimental to the environment in the long run. Hence, many environmentalists strive for cryptocurrencies that won’t negatively affect the environment.
Elon further backed the push for green cryptocurrencies when he wrote a message on his Twitter page about rejecting Bitcoin as a means of payment for Tesla’s electric cars. There was a tremendous reaction from many people on the platform, and more of Twitter’s users joined him to push for environmentally-friendly cryptocurrency.
Since then, many sustainable cryptocurrencies have begun to surface, such as Bitgreen.
Musk’s Positive Contributions to Crypto
Elon has made several positive contributions to the cryptocurrency industry. His influence has helped several unknown coins come to light. One of his most important contributions to the crypto market was the introduction of Dogecoin to SpaceX.
Due to Elon’s influence, DOGE saw a remarkable increment in its worth. Some of Twitter’s users feel Musk’s Twitter comments increase market volatility. However, market volatility is natural in the advancement of cryptocurrency.
Elon is one of the top influential figures in the cryptocurrency market. Over the years, there have been several instances where cryptocurrency prices increased or decreased due to his Twitter comments. Dogecoin became popular due to Musk’s post on Twitter.
He also influenced the price of Bitcoin when he was featured on SNL. In various situations, comments from Elon have led to changes in the value of cryptocurrencies. It is safe to say that Elon Musk’s words have a big role in cryptocurrencies.
Elon's fame and influence and his large interest in cryptocurrencies make him an important entity in the crypto world. He has a proven track record of sometimes causing big market movements with his comments and opinions about crypto.
Musk's electric car company lost $140 million on the Bitcoin it bought in March 2021. At that time, Tesla had announced that it would accept BTC as a payment method for its electric vehicles, but it canceled that plan later in May 2021.
Musk is closely associated with Dogecoin. In April 2023, he changed Twitter's logo to the Doge meme, causing the price of Dogecoin to rise to $0.101. He has also made his support for Dogecoin known to the general public even before becoming the owner of Twitter.