It seems that Tesla and SpaceX CEO Elon Musk is gradually losing his grip on the cryptocurrency market – at least considering that his crypto-focused tweets haven’t had a significant impact on prices lately.
Just a few months ago, a single tweet from Musk about Bitcoin (BTC), Dogecoin (DOGE) or any other cryptocurrency was enough to raise the prices of the corresponding digital assets by a large amount.
DOGE, for example, rose 50% after Elon Musk gave the cryptocurrency a boost in February. Another time, Musk has skyrocketed the dog coin by 76% with a rocket tweet. In January, BTC jumped 18% after Musk wrote “Bitcoin” in his Twitter bio.
Musk has fallen from grace
However, the Tesla CEO’s “crypto credibility” is crumbling rapidly lately. Perhaps most notable is Musk’s announcement at the end of March. First Musk had stated that Tesla will accept BTC as a means of payment for its electric cars – only to take it back a few months later because of environmental concerns. In addition, Musk appeared on Saturday Night Live and called Dogecoin a “crook” there.
Unsurprisingly, crypto believers didn’t find the subsequent drop in coin prices amusing – any more than the fickle nature of Musk’s tweets. After this turning point, the mood within the community towards Musk began to shift drastically. Bitcoin maximalist Max Keiser even announced his “Fuck Elon Tour” as a result, which he now holds on July 8 and 9 in Texas.
Consequently, Musk’s recent tweets about cryptocurrencies also had no significant impact on their price. On July 2, for example, Musk tweeted another meme image: the depiction of a man ignoring attractive women around him to watch the DOGE course. However, the actual price of Dogecoin remained largely unaffected.
“RIP to a simple side income”
Crypto analyst Larry Cermak comments Ironically:
“The pumps are so weak now. RIP to a simple side income“
Similarly, Mati Greenspan, founder of crypto analytics outfit Quantum Economics, sees it. He points out that the effects are “no longer even visible on the daily chart”.
Not even visible on the daily chart anymore. Very clean and comfortable. pic.twitter.com/OYunic3Hed
– Mati Greenspan (tweets ≠ financial advice) (@MatiGreenspan) July 2, 2021
Alexandra Clark, Sales Trader at GlobalBlock, also tells Business Insider:
“It seems that investors are no longer listening and are finally realizing that a man’s tweets should not be the deciding factor in whether they buy or sell their assets.“
Currently (time of this article) Bitcoin is trading at around $34,730, which is a 3.8% drop within 24 hours, according to crypto metrics platform CoinGecko.
Musk has also recently managed to pump a particular coin with his tweet. The somewhat odd Dogecoin offshoot Baby Doge skyrocketed 130% last Friday after Musk tweeted about it – apparently referring to the hugely popular YouTube video titled “Baby Shark Dance.”
As its power over the major cryptocurrencies diminishes, it looks like Musk’s remaining influence can merely influence some obscure altcoins.
Text credit: Cryptoslate
Last updated on July 6, 2021
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