Elon Musk is influential in many areas of today’s life, including the automotive industry, technology, his tweets, satellites, but let’s not forget cryptocurrencies. In fact, everything he says, more or less, defines and changes the existing trend in the crypto market. How can one influence so many whole markets to change from day to day, in just a few words?
Almost no one can explain this phenomenon, but they cannot deny it either, because the impact is more than obvious.
To make the situation even more interesting, this impact lasts for years. These are not one or two isolated cases, but every time Musk tweets some speculation, or even just mentions the word “crypto”, huge turbulence occurs in the market.
At one point, Elon Musk posted something that looked like a riddle, alluding to the fact that he would no longer support Bitcoin. He publicly supported Dogecoin, declaring that it was better than its competitor. According to him, Dogecoin is a currency that has a constant flow in the market, while Bitcoins are kept as savings, to be sold at the desired price.
He says so many things that even experts and investors are not able to find a common ground between what is said and the effects that occur.
How does all this affect traders?
There are two categories of cryptocurrency traders – one that is afraid of every Musk statement, and the other that ignores it all and continues with the planned strategy. For some people, everything he says is like a law, after which they adapt their approaches while trading.
Others, even with visible changes, follow current market events through their trading profiles on platforms like the-crypto-superstar.com/de.
However, it is more than clear that this impact can not be easily ignored.
For example, Musk often states that cryptocurrencies are interesting to him and that he is always in the mood to talk about money, but that he does not believe that they will replace fiat currencies. Also, throughout 2023, he constantly speculated on the value of Bitcoin and Dogecoin.
To the attacks that he is changing these markets, he replied that they are changing themselves, for no particular reason and that he does not believe that a few of his words can make such a big move.
Should investors and traders take it seriously?
As we have said, there are crypto experts who hate Elon Musk, but there are also those to whom his statements are crucial in making decisions. Sure, he is a fan of cryptocurrencies, but he acts as if he hates all those who are involved in his activities in any way.
Interestingly, by 2023, Musk had shown no interest in the crypto world, but that changed overnight when he said a year ago that Tesla had bought more than $ 1 billion worth of Bitcoin. And of course, suddenly the interest in BTC grew and in a short time reached the historically highest value, compared to fiat currencies.
Then, when Dogecoin was launched, he devalued Bitcoin in every way possible, claiming that the new currency was exactly what the world and traders needed. Additionally, he added fuel to the fire by saying that Doge is better for transactions and has more potential because it is intended specifically for consumers.
After that, the new Forgecoin fork, named Floki Inu, happened. The value of this currency has risen by 30% since Musk first mentioned it. He also has a Shiba Inu dog named Floki.
Unofficially, in the circles of investors and crypto experts, Elon’s tweets are causing what they call “the Musk effect“.
Many investors believe that Bitcoin is too strong
This is a group of crypto enthusiasts who especially appreciate currencies other than BTC. According to them, this currency is overbought and they believe that the actions of Elon Musk are actually good for correcting the situation in the crypto market.
Musk’s statements last year shattered all speculation that he was in fact the founder of Bitcoin. He certainly denied it in 2014, but his statements at the time did not have much of an impact on the market.
But it is true that today, many believe that if he continues with such habits, he will help to correct the unjustly distributed funds and that other cryptocurrencies will get their chance to become competitive.
However, can it be believed that just a few words of this influential man are enough for a market to change? Are tweets using less than 100 letters powerful enough to cause such a stir? Of course, there are thousands of other factors that are part of it all, so it is not fair for all the accusations to go to Elon Musk.
We ourselves know that the beginning of the pandemic was a sufficient factor for constant change, without him mentioning Bitcoin or any other currency at all.
If one constantly follows Elon Musk’s statements related to money, one will see that there is a certain inconsistency. At one point he considered cryptocurrencies a revolutionary concept, but the next he said he hated them and would not give up on fiat currencies. Then he changes his mind and says that crypto offers more opportunities for consumers than the classic financial system.
Why then are his words so powerful as to cause huge upheavals in the way the market works?
Of course, wealth, general influence, but also the scandals and extravagance do their thing. Many investors and traders of cryptocurrencies choose to ignore it and follow the trends, charts, and statistics, which provide more relevant information about current developments.
We know that the market will suffer huge changes all the time. We know Bitcoin is too volatile, and no one can trust it completely. But, there are so many factors responsible for that. So, no matter if you like or highly dislike Elon Musk, it’s simply not fair to blame him for all those changes on the market.
It’s better to educate yourself, and of course, take in mind all the other factors that change the crypto price over time.