Crypto markets these days are very explosive. It’s not very hard to predict the ups and downs of digital currencies but due to tweets of famous celebrities or influencers, it has become unstable by nature. Elon Musk holds a very reputed place as the CEO of Tesla and SpaceX. Also, he holds an interest in crypto markets. This is the reason why his tweets hold importance.
Elon Musk’s tweets always affected the crypto industry. He stays active on social media platforms. Twitter is nowadays the most trusted and popular platform when it comes to discussing personal views openly. Since he holds the verified mark so people tend to follow him blindly.
When he tweeted about Dogecoin, its value of it frequently rose and fell. It has increased by more than 800%. He tweeted about it in 2021. Dogecoin was trading at $0.0829 before this tweet. While right after the tweet the price jumps suddenly to $0.0829. Later again he showed his love for the memecoin Doge. He tweeted the picture of Dog wearing a t-shirt with a Twitter logo. This again pumped the prices of Dogecoin. Before tweeting the trading price of this Dogecoin was $0.12 and just after the tweet the prices went up by $0.147.
Elon’s way of tweeting is very free and filled with fun. Some of his followers enjoy while others may be concerned. Because it raises a section open for debate.
Once, he also tweeted about Bitcoin. This leads to a fall in its value by 10%. He tweeted that Tesla will no longer accept the payment of its vehicles by Bitcoin. And, the reason revealed that Bitcoin utilizes too much energy.
Role of Social Media in the Crypto Market
This is the age of the internet. Everyone is present on social media. Since we are talking about digital assets, the effect of social media is the topmost point of discussion. These platforms have increased communication and information sharing about cryptocurrencies easier. Cryptocurrency investors and fans have a huge impact on the market.
Precisely saying that social media made the conversation easy but social media influencers like Elon Musk may influence the investors. The market volatility gets affected. While looking at the other side social media democratizes information access and gives small investors a way to interact with the market.
The crypto market is gaining popularity day by day. Ethereum and bitcoin have surged in value giving a chance to many to become rich. But, the serious concern is tweeted by influential figures. Elon Musk’s tweets can have everlasting impacts on users. The price may jump and fall but the tweets will definitely hamper the thinking of investors in a way.
This concern of impacting social media influencers and popular-famous celebrities raised the question of transparency in the crypto market. This will surely help to build trust. The Pump and dump schemes will affect the prices. Social media is also used to coordinate these types of schemes.
Some of the views are that the influential figures create unevenness and lack of surety in the market while others may predict the future of the cryptocurrency by judgin
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2023/05/10/crypto-market-impacts-due-to-elon-musks-tweets/