Elon Musk and Donald Trump have exerted significant influence on the cryptocurrency market, albeit in different ways.
Influence of Elon Musk:
-Impact on cryptocurrency prices: Elon Musk's comments, especially through his social media posts, have caused instantaneous and significant fluctuations in cryptocurrency prices. A notable example was in January 2021, when he changed his Twitter bio to "#bitcoin," causing an increase of more than 6,000 dollars in the price of Bitcoin within hours.
-Support for Dogecoin (DOGE): Musk has been a strong advocate for Dogecoin, referring to it as "the people's cryptocurrency." His tweets have caused the price of DOGE to soar, sometimes by more than 50% in a day. Tesla, one of his companies, has even started accepting DOGE as a form of payment for some of its products.
-Investments in cryptocurrencies: Tesla invested 1.5 billion dollars in Bitcoin in February 2021, which boosted Bitcoin's credibility among institutional investors. Musk has also publicly stated that he owns Bitcoin, Ethereum, and Dogecoin.
-Creation of "memecoins": Musk's influence has led to the creation of tribute cryptocurrencies or "memecoins" like Elon Musk (MUSK) and Dogelon Mars (ELON), which often capitalize on the "hype" on social media.
*-Market volatility: Musk's ability to influence prices with a single tweet has raised concerns about market volatility and the power that individual figures can have over financial assets.
Influence of Donald Trump:
-Pro-crypto stance: Despite initial skepticism, Donald Trump has taken an openly favorable stance towards cryptocurrencies, promising to turn the United States into the "crypto capital of the planet" and a "bitcoin superpower."
-Personal earnings: Trump has made over 57 million dollars from the sale of tokens from a U.S. platform with which he signed an agreement, and launched his own digital currency, $TRUMP. Cryptocurrency companies have contributed at least 620 million dollars to his fortune in just a few months.
-Government initiatives: As president, Trump has taken initiatives such as appointing a cryptocurrency advocate as director of the U.S. Securities and Exchange Commission (SEC) and establishing a federal "strategic reserve" funded with seized bitcoins. He has also signed executive orders to strengthen U.S. leadership in digital financial technology and create a strategic Bitcoin reserve under state control.
-Market impact: Trump's victory in the 2024 presidential election had a pronounced impact on the crypto markets, with Bitcoin and Ethereum experiencing significant increases. His intention to transform the United States into the "cryptographic capital of the planet" has generated optimism among investors.
-Regulation: The Trump administration seeks to advance cryptocurrency regulation, with the potential approval of key legislation in the coming year.
In summary, while Elon Musk has influenced the market primarily through his comments and endorsement of certain cryptocurrencies, Donald Trump has impacted the crypto space through his personal earnings, his pro-crypto political stance, and government initiatives aimed at legitimizing and integrating cryptocurrencies into the financial system.