Elon Musk’s brief social media posts about cryptocurrency have resulted in significant gains for Bitcoin, Dogecoin, and SHIBA INU on multiple occasions. How many of these instances can you recall?
Twitter, still commonly referred to as X, has solidified its position as a crucial social media platform for the crypto community. In addition to providing early adopters with a chance to engage with one another, it has allowed Bitcoin and Ether to break into mainstream consciousness. It is rare for a day to go by without a crypto term trending on the platform, and currently, there is a lot of excitement surrounding #HAMSTERKOMBAT.
Spaces has also emerged as a popular venue for in-depth discussions about the principles that underpin the industry, often attracting prominent figures. There have been times when Musk’s posts, or tweets, have had a significant and sudden impact on the crypto markets, not always in a positive manner. It is no surprise that many of these instances originated from Elon Musk, who was an avid promoter of digital assets until a few years ago and currently owns X.
Bitomat recently conducted a study that examined the tweets with the greatest impact, providing a compelling account of the turbulent journey that cryptocurrencies have experienced thus far. Who would have thought that just three little words could make such a substantial difference?
For example, Dogecoin, a relatively niche memecoin at the time, saw its value double to $0.004 in the days following a post in December 2020. This marked the beginning of an impressive bull run that saw its price peak at $0.7376. Interestingly, this peak occurred when Musk referred to it as a “hustle” on Saturday Night Live. An individual who invested in this altcoin at the time of the initial post would have made a profit of $184 for every $1 invested. To this day, Dogecoin remains one of the largest cryptocurrencies by market capitalization.
Although not delivered in the form of a tweet, the impact of Musk’s quiet addition of #bitcoin to his bio on Twitter in January 2021 was substantial. Once noticed by Bitcoin enthusiasts, it led to a significant increase in the value of the world’s largest cryptocurrency, soaring from $32,000 to over $38,000 in just a few hours. Such sudden and substantial increases are rare.
However, just as Bitcoin’s volatility can work in both directions, so can Musk’s posts. When he announced that Tesla would no longer be accepting Bitcoin due to concerns about its energy use and carbon emissions, it resulted in a drastic 19% drop in BTC’s value, from $58,000 to $47,000.
In 2021, Musk was a major proponent of DOGE, with one of his posts leading to a 50% increase in its value, accompanied by 100,000 retweets. Similarly, the success of Dogecoin sparked the creation of several smaller memecoins, including Shiba Inu, which tripled in value following five words and a hashtag. Today, it remains the 11th-largest cryptocurrency in the world with a market cap exceeding that of some established companies.
Another post from Musk in December 2021 resulted in a 43% rally for DOGE, and Mark Cuban’s acknowledgment of its low transaction fees led to a 78% increase two months later. These tweets, which were all posted within four weeks of each other, played a crucial role in DOGE’s unlikely rally to a market cap that even temporarily exceeded that of some of the world’s oldest banks.
Although each of these instances led to double-digit gains, DOGE is currently trading at 82% below its all-time high set in May 2021 and has failed to gain momentum during the current bull run. In a sign of the lasting impact of Musk’s posts, a group of investors has filed a lawsuit against him for a staggering $258 billion, accusing him of using “his pedestal as the world’s richest man to operate and manipulate the Dogecoin pyramid scheme.” His lawyers are currently working to have the lawsuit dismissed.