How a lot affect do Elom Musk’s tweets actually have?
Love him or hate him, there isn’t any denying the cultural impression Elon Musk has had during the last couple of years. He was topped the world’s richest man again in January, based well-revered corporations Tesla and SpaceX, and likewise has the facility to show meme cryptocurrencies into official investments.
I’m after all referring to Dogecoin, a cryptocurrency named after an web meme that was initially based as a joke again in 2013. The value of Dogecoin has risen considerably not too long ago, with many giving credit score to Musk’s relentless tweets about it. His tweets have even led to studies of him being investigated by the U.S. Securities and Alternate Fee. So, let’s check out how a lot affect Elon Musk actually has over the worth of cryptocurrencies.
Dogecoin
On February eighth this yr the worth of Dogecoin peaked at $0.105 AUD – which does not appear very spectacular till you think about that only one yr prior it was value nearly 30 instances much less. This implies if you happen to had invested $1,000 in Dogecoin again in February 2020, you’d have been left with $29,539 in February.
There have been three large value actions earlier within the yr, the primary showing on January 2nd when the worth nearly tripled. There have been no tweets from Musk on these days however previous to this value hike, there have been two tweets from Musk in December. The primary studying “One phrase: Doge” and the second being a Christmas tweet that included an image of doge underwear. Its secure to say that these tweets that appeared 8 and 15 days prior weren’t the reason for this value hike.
The largest value improve occurred between the twenty eighth and thirtieth of January, the place it elevated by 7 instances from $0.01 to $0.07 AUD. This was the results of Elon Musk tweeting a parody Vogue journal cowl titled Dogue. The following 12 hours after this tweet was when Dogecoin skyrocketed and allowed it to interrupt $0.1 AUD for the primary time ever. Shortly after that peak, Musk printed an ambiguous tweet stating “On reflection, it was inevitable”, most certainly referring to the results of his earlier submit.
The following few days noticed the worth taper off and enter a risky state, and whereas Dogecoin wasn’t near hitting its unique low from only one month prior, it additionally wasn’t near its peak on the twenty ninth. That was till Elon spurred one other value hike with a set of three tweets ranging from the 4th of February. The three tweets consisted of assorted memes associated to the crypto and even included Snoop Dogg and Gene Simmons, two high-profile celebrities who’re additionally Dogecoin advocates. The time round these three tweets noticed the worth hit its peak of $0.106 AUD, rising greater than 162% in simply 5 days.
So … it is lastly come to this … pic.twitter.com/Gf0Rg2QOaF
— Elon Musk (@elonmusk) February 7, 2021
Public curiosity was clearly there whereas Musk was tweeting and the worth was skyrocketing, however onlookers had been most certainly watching from a distance somewhat than investing. Google traits exhibits that from the twenty fourth of January search quantity for “Dogecoin” had hit its all-time peak, and was nonetheless very excessive by the point the second value hike got here alongside.
Sadly, this development of Elon tweeting and the worth of Dogecoin growing didn’t final after these 5 days. From the eighth of February onwards Musk printed 12 Doge-related tweets, with none of them making any true waves on value graphs. Whereas the eccentric genius continues to be tweeting memes in regards to the crypto, the worth has stayed comparatively steady in March and presently sits at round $0.07 per coin.
Bitcoin
On the eighth of February, information broke that Tesla had bought greater than $1.5 billion value of Bitcoin and even deliberate to simply accept Bitcoin as a type of cost down the road. This buy noticed the worth of Bitcoin surge by 49% in simply 15 days.
On the nineteenth of February – simply three days earlier than the surge ended – Musk posted some Bitcoin-related tweets, defending the crypto and instantly evaluating it to Fiat cash. Just a few days after these tweets had been printed is when value surge began to finish and the worth fell by 14% simply 5 days after its peak. On this case, Musk tweeting noticed the top of a surge as an alternative of a starting.
Whereas Musk tweets loads much less about Bitcoin than he does Dogecoin, Bitcoin costs have seen far more steady progress during the last couple of months. Rising by nearly 70% for the reason that begin of the yr.
Twitter shouldn’t be used for funding recommendation
Regardless that the worth of Dogecoin continues to be 22 instances larger than what it was only one yr prior, it is secure to say that Elon Musk was driving the Dogecoin wave somewhat than being the one inciting it. The hype has clearly died down for now and most people has moved onto the following large factor. These sorts of annual returns are mouth-watering for any funding, however with Elon’s tweets not having an impact on the worth, it is exhausting to inform what trajectory the worth has shifting ahead.
Whereas Musk has been tunnel-visioned on Dogecoin for the previous month or so, different cash and tokens have quietly been rising within the background. The crypto area has many various funding avenues they usually all transfer at totally different paces. To maintain up with every thing crypto, remember to take a look at Finder’s various guides and pages on easy methods to get into the crypto market whereas it is sizzling.
Latest Insights blogs
Image: Getty/Shutterstock
