If anyone has the power to move markets with a single tweet, it is Elon Musk. The billionaire and Tesla CEO’s tweets about crypto have sent the bitcoin’s process on a roller-coaster ride this year. The prices of the cryptocurrency soared nearly 20% after he added a hashtag of bitcoin on his Twitter biography. Moreover, jumped 16% in a single day after Tesla Inc. revealed that it bought $1.5 billion worth of cryptocurrency the following month.
While Musk’s tweets do not necessarily target his own financial gains, they greatly affect investors in cryptocurrency. The fact that retail investors are increasingly flocking to cryptocurrencies raises questions about the solidity of the market and how it can so easily be swayed. The cryptocurrency exchange platform Coinbase was the first major crypto company to go public in the US in April. This signified the mainstreaming of blockchain-based currencies, such as, dogecoin, Ethereum and bitcoin.
Elon Musk’s tweets have been particularly impactful on the prices of bitcoin The price rollercoaster started back in May when Musk tweeted that Tesla would no longer be accepting bitcoin as payment because of environmental concerns of heavy energy use. This caused the price of the bitcoin to drop by 15 percent. A few days later in response to a tweet by @CryptoWhale, Musk suggested that Tesla would sell its cryptocurrency holdings – causing prices of the cryptocurrency to drop to an all-time low since February.
On May 17th, Musk clarified speculations and said that “Tesla has not sold any bitcoins”, which halted the drop in prices and kept them at roughly around $45,000. And he didn’t stop there, on June 3rd he tweeted a meme about breaking up with bitcoin, causing the prices to decline by another 5 percent. Most recently he tweeted that Tesla would resume bitcoin transactions once miners moved to “reasonable” clean energy usage and the price of the cryptocurrency surged by nearly 10 percent.