What is Elon Musk's influence on cryptocurrency prices, especially through his tweets and statements:
🧠 Background: Who is Elon Musk in this context?
Elon Musk is the CEO of companies like Tesla and SpaceX, and is considered one of the most influential figures in the markets, especially online. He has millions of followers on platform X (formerly Twitter), and his tweets can move financial markets, especially the cryptocurrency market.
💥 Examples of his influence in the cryptocurrency market:
1. Bitcoin:
In February 2021, Tesla announced that it had purchased $1.5 billion worth of Bitcoin and would accept it as a payment method.
➤ Result: The price of Bitcoin surged significantly, exceeding $50,000 at that time.
A few months later, Musk stated that Tesla would stop accepting Bitcoin due to environmental concerns regarding energy consumption.
➤ Result: Bitcoin prices dropped sharply.
2. Dogecoin:
Musk often tweets about Dogecoin in a humorous or cryptic manner. He has sometimes referred to himself as "The Dogefather."
In May 2021, he participated in the Saturday Night Live program and talked about Dogecoin, but jokingly referred to it as "a hype."
➤ Result: After the announcement, Dogecoin prices collapsed by about 30%.
He later announced that some Tesla products could be purchased using Dogecoin, which raised the price of the currency again.
🔄 Summary of the impact:
Action Influence on the market
Positive tweet Immediate price increase
Negative hint or environmental concern Sudden drop
Support for a small coin (like DOGE) often leads to inflated prices
⚠️ Important notes:
The influence is often temporary, and may be followed by a correction or decline.
The market began to react less intensely to his tweets in 2024–2025, compared to previous years.
Some analysts believe this influence is a double-edged sword, as it creates high volatility and unstable speculation.